What Is the Free Market System

question 18

Essay

What is the free market system?

---

Definitions:

Prime Costs

The direct costs of manufacturing, including direct labor and materials.

Direct Labour

The work done by employees directly involved in producing a product or delivering a service, often considered a variable cost.

Direct Materials

Direct materials are the raw materials that are directly traceable and allocable to a finished product in the manufacturing process, directly impacting the cost of goods sold.

Production Costs

The total expense incurred in the manufacture of a product, including labor, materials, and overhead.