________ Consist of Major Capital Equipment Such as New Factories

question 87

Multiple Choice

________ consist of major capital equipment such as new factories and heavy machinery.

• A) Accessory goods
• B) Specialty goods
• C) Installations
• D) Shopping goods

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Definitions:

Full (Absorption) Cost

The total cost of a product that includes all direct and indirect costs, such as raw materials, labor, and overhead, required for its production.

Transfer Price

The price charged for goods or services transferred between divisions or units of the same company.

Additional Parts

Extra components or pieces supplied beyond the original requirements, often used for repairs, replacements, or enhancements.

Idle Capacity

The available production capacity that is not being used, often indicating inefficiency or unmet demand.