Which of the Following Items Would Be Classified as a Part

question 25

Multiple Choice

Which of the following items would be classified as a part of prime cost?

• A) Direct labor cost
• B) Factory overhead cost
• C) Selling cost
• D) Administrative cost

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Definitions:

Midpoint Method

A technique used in economics to measure the elasticity of a variable by averaging the starting and ending points.

Price Elasticity

A measure indicating how much the quantity demanded of a good or service changes in response to a change in its price.

Midpoint Method

A technique used in economics to calculate the elasticity of a variable, using the average of initial and final values as reference points.

Unit Elastic

Describes a situation where the change in quantity demanded or supplied is exactly proportional to the change in price.