When Estimating the Cost Structure of a Manufacturing Supplier

question 15

Multiple Choice

When estimating the cost structure of a manufacturing supplier:

• A)material costs are difficult to estimate.
• B)direct labor costs are the easiest costs to estimate.
• C)prices of raw materials are not commonly accessible.
• D)labor rates are typically uniform across different plant locations.
• E)equipment depreciation is typically the largest cost element in overhead.

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Definitions:

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