Variable Cost does Not Include

question 33

Multiple Choice

Variable cost does not include

• A) raw materials and resources.
• B) staff and management salaries.
• C) material handling and freight.
• D) direct labor and packaging.

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Definitions:

Oil Wells

Structures drilled into the earth for the purpose of extracting petroleum and other hydrocarbons.

Appraised Fair Value

The estimated market value of an asset based on the judgment of a qualified appraiser at a specific time.

Cost

The value of economic resources used or the amount of expenditure incurred to acquire or produce a good or service.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by subtracting any associated depreciation or amortization from its cost.