Which of the Following Is a Manufacturing Cost

question 99

Multiple Choice

Which of the following is a manufacturing cost?

• A)Cost of supplies used by sales personnel
• B)Indirect factory labor
• C)Product advertising costs
• D)Administrative expenses

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Definitions:

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, often leading to an imbalance in decision-making.

Inefficient Outcomes

Situations in which resources are not allocated optimally, leading to wasted resources or unmet potential.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because they are protected by an insurance or other agreement.