Which Two Categories Below Are Used for Business Costs

question 24

Multiple Choice

Which two categories below are used for business costs?

• A) materials and labor
• B) gross and net
• C) fixed and variable
• D) cost of goods sold and administrative

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Definitions:

Horizontal Merger

Merger that joins firms in the same industry for the purpose of diversification, increasing customer bases, cutting costs, or expanding product lines.

Vertical Merger

Merger that combines firms operating at different levels in the production and marketing process.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or other business activity.

Conglomerate Company

A Conglomerate Company is a large corporation composed of several companies with diverse or unrelated business interests.