In a Business Formula Such as Return on Investment, "On

question 16

Multiple Choice

In a business formula such as Return on Investment, "on" means ________.

• A) "Divided by"
• B) "Deducted from"
• C) "On top of"
• D) "Instead of"
• E) None of the above

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Definitions:

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent, property taxes, and insurance.

Variances

The differences between planned or expected financial outcomes and the actual financial outcomes.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.

Direct Labor

The labor costs directly tied to the production of goods or services, such as wages paid to employees who physically produce a product.