The Cost of Freight-In

question 163

Multiple Choice

The cost of freight-in

• A) is to be included in the standard cost of direct materials.
• B) is considered a selling expense.
• C) should have a separate standard apart from direct materials.
• D) should not be included in a standard cost system.

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Definitions:

Supply Function

A relation that shows the quantity of a good or service that producers are willing and able to sell at each possible price, holding all other factors constant.

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, and the market is in balance, without any excess supply or shortage.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various prices.