The Factors of Production Include All Goods and Services Produced

question 20

True/False

The factors of production include all goods and services produced in an economy.

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Definitions:

Direct Materials Cost

The cost of raw materials that are directly traceable to a finished product and an essential part of manufacturing the product.

Transfer of Completed Goods

The movement of goods that have been finished in the manufacturing process from the production area to inventory or directly to sales.

Work in Process

Inventory consisting of goods that are in the process of being produced but are not yet finished.

Finished Goods

Finished goods are products that have completed the manufacturing process and are ready to be sold to customers.