Which two categories below are used for business costs?

Question

BlackTom AI · Accepted Answer

To tackle the question, I’ll compare what each option implies about cost categorization in business accounting.
Option 1: 'fixed and variable' — This pairing represents the primary wayCosts are categorized in many business contexts: fixed costs stay the same regardless of output, while variable costs change with activity level. This is a standard classification used for budgeting, costing, and decision making.
Option 2: 'materials and labor' — These are common cost components or cost drivers within production, but they are not a high-level categorization of costs themselves. They describe what some costs are composed of rather than the overarching categories into which all costs fall.
Option 3: 'cost of goods sold and administrative' — These terms refer to functions or categories of expense within financial statements (COGS vs. administrative expenses). They are types of cost objects or departments, not the broad cost behavior categories used for budgeting and costing.
Option 4: 'gross and net' — These are financial performance measures (gross profit, net profit, or net income) rather than classifications of costs. They describe outcomes, not the nature of costs themselves.
By weighing the purpose and scope of each option, the pair that truly serves as the fundamental cost behavior categories in business is fixed and variable. The other options describe components, functional classifications, or financial outcomes rather than the essential cost behavior framework.

GBUS4330W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

Which two categories below are used for business costs?

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GBUS*4330*W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

Which two categories below are used for business costs?

查看解析

登录即可查看完整答案

类似问题

Two types of costs might be:

Match the following with the appropriate cost type 1: Rent on the office ____ 2: Professional insurance ____ 3: Catering for client presentation ____ 4: Direct Marketing communications ____ 5: Software subscription ____ 6: Part Time wages ____

Which of the following is a true classification of types of operational costs?

In a consumer society, many adults channel creativity into buying things

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A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

更多留学生实用工具

希望你的学习变得更简单

GBUS4330W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

Match the following with the appropriate cost type 1: Rent on the office 2: Professional insurance 3: Catering for client presentation 4: Direct Marketing communications 5: Software subscription 6: Part Time wages