Which of the Following Pair of Terms Is Similar

question 47

Multiple Choice

Which of the following pair of terms is similar?

• A)Overhead and direct cost.
• B)Direct cost and fixed cost.
• C)Overhead and fixed cost.
• D)Overhead and variable cost.

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, used to cover other expenses and profits.

Sales

The total amount of goods or services sold by a company within a specific period.

Residual Income

Earnings that exceed the minimum required return on an investment or project.

Unit Selling Price

The price at which a single unit of a product is sold to customers.