Which of the Following Would Not Be Classified as a Product

question 32

Multiple Choice

Which of the following would not be classified as a product cost?

• A) Direct materials.
• B) Direct labor.
• C) Indirect materials.
• D) Insurance on a manufacturing plant.
• E) Sales bonuses for meeting quota sales.

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Definitions:

Lower Inflation

A decrease in the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is increasing.

Effectiveness Lag

The delay between the implementation of a policy and the time it takes for the policy's effects to manifest in the economy.

Monetary Policy

Economic strategy chosen by a government's central bank to control the money supply, aiming at achieving macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.

Adaptive Expectations

An economic theory suggesting that people adjust their future expectations based on past experiences and trends.