__________ Are Generally Materials Necessary for Production That Do Not

question 172

Short Answer

__________ are generally materials necessary for production that do not become part of the finished product or are not used to provide a service.

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision.

Explicit Costs

Direct, out-of-pocket payments for goods or services used in the production of a product or service.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods and services, including materials, labor, and overhead.

Opportunity Costs

Opportunity costs represent the benefits a person or business misses out on when choosing one alternative over another.