A Sign Manufacturer Who Uses Plastic, Metal, and Neon Tubing

question 98

Multiple Choice

A sign manufacturer who uses plastic, metal, and neon tubing to create a motel sign has performed the marketing benefit of creating ________ utility.

• A) form
• B) place
• C) possession
• D) time
• E) creation

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Definitions:

Manufacturing Overhead

All the indirect costs associated with the production process, including utilities, maintenance, and salaries of non-direct labor.

Depreciation Expense

The allocated portion of the cost of a tangible fixed asset that is considered used up or consumed during its period of use in business operations.

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to a specific product or service, such as rent, utilities, and office supplies.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not been sold yet.