ENT II 2.02 Test OPEX

Which of the following is another name for operating costs?

• overhead

• capital expendtures

• fixed expenses

• variable expenses

Operating costs that do not increase or decrease with changes in productions are called______________expenses.

• mixed

• semi-variable

• fixed

• variable

A business's rent or mortgage is a ___________expense.

• variable

• semi-variable

• semi-fixed

• fixed

Operating costs that fluctuate with changes in production are called__________expenses.

• variable

• fixed

• capital

• total

Sales commissions are a ______________expense.

• one-time

• capital

• fixed

• variable

Considered together, salaries and sales commissions are a

• semi-fized expense

• capital expenditure

• direct production cost

• type of payroll tax

The sum of the operating and direct expenses required to make a product is its

• price markup

• total cost

• gross cost

• breakeven point

A price markup is the difference between how much it costs to make a product and

• how much employees make

• what was estimated in the budget

• the company's gross profit

• its selling price

A business determines how much it costs to make a product-and then adds a predetermined markup to set its selling price.  This is an example of

• cost-based pricing

• price-based costing

• economies of scale

• gross profit

 A business has determined that customers are willing to pay $25 for its product.  Managers attempt to make the product for $15, so the business can make a $10 profit.  This is an example

• gross profit

• economies of scale

• cost-based pricing

• price-based costing