The Unit of Sale for a Manufacturer Is ________

question 21

Multiple Choice

The unit of sale for a manufacturer is ________.

• A) a dozen of an item
• B) one item
• C) one order
• D) one hour of time

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Definitions:

Total Fixed Costs

The sum of all business expenses that remain constant regardless of production volume, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business.

Economic Order Quantity

Orders replacements whenever inventory level falls to a predetermined point.

Inventory Level

The quantity of goods or materials held in stock by a business at a specific point in time.