Which of the Following Are Considered Product Costs

question 81

Multiple Choice

Which of the following are considered product costs?

• A)period costs and administrative expenses
• B)selling and administrative expenses
• C)inventoriable costs and plant assets
• D)direct labour costs and manufacturing overhead

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Definitions:

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product, as opposed to practicing price discrimination.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Network Effects

The phenomenon where increased numbers of users or participants improve the value of a good or service.

Natural Monopoly

A situation where due to high fixed costs or other barriers, a single firm can supply a product or service to an entire market at a lower cost than what two or more firms could.