An Example of Tangible Capital Is

question 155

Multiple Choice

An example of tangible capital is

• A) a restaurant's unsold, unopened cans of soda.
• B) an idea for a new business.
• C) the goodwill a firm has established through advertising.
• D) knowledge of how to program a computer.

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Definitions:

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services, such as maintenance and clerical staff.

Precision Drills

Specialized tools or equipment designed for creating holes with exact dimensions and tolerances.

Oil Exploration

The process of searching for underground or underwater oil reserves with the goal of drilling and extracting oil.

Standard Costs

Predetermined costs for manufacturing a product or providing a service, used as benchmarks to measure performance.