A Savings Account Functions as

question 39

Multiple Choice

A savings account functions as

• A) a unit of account.
• B) a store of value.
• C) a medium of exchange.
• D) none of the above

---

Definitions:

Expenses

Outflows or depletions of assets or incurrences of liabilities during a period as a result of delivering or producing goods, rendering services, or carrying out other activities linked to an entity's main operations.

Variable Costing

A costing method where variable manufacturing costs are treated as product costs, and fixed manufacturing overhead is treated as a period cost.

Net Income

The amount of earnings left after all expenses, including taxes and costs, have been subtracted from total revenue.

Fixed Overhead

Fixed overhead consists of the consistent, ongoing costs not directly tied to production levels within a business, such as rent, insurance, and salaries.