Which of the Following Statements About How a Manufacturer Categorizes

question 10

Multiple Choice

Which of the following statements about how a manufacturer categorizes its costs and expenses is true?

• A) A general expense is much like a direct cost in that it cannot be identified directly with a specific object of profit measurement, such as a territory, salesperson, or product
• B) All costs are categorized as either direct or indirect-but never as both
• C) A salesperson's salary would be a direct cost for his or her territory, but an indirect cost for the product sold
• D) Advertising is a direct cost
• E) A specific expense is much like a direct expense in that it can generally be identified with a wide range of products and functions

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Definitions:

Health Care Economics

A branch of economics concerned with issues related to efficiency, effectiveness, value, and behavior in the production and consumption of health and healthcare.

Health Care Services

A broad range of services provided by professionals to support individuals' health, including prevention, diagnosis, treatment, and management of illnesses and injuries.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or provides reimbursement to the insured for expenses incurred from illness or injury.

Health Care Dollars

Refers to the financial resources allocated to the health care system, including government spending, private insurance, and out-of-pocket expenses by individuals.