Which of the Following Is an Example of a Cost

question 145

Multiple Choice

Which of the following is an example of a cost that varies in total as the number of units produced changes?

• A) salary of a production supervisor
• B) direct materials cost
• C) property taxes on factory buildings
• D) straight-line depreciation on factory equipment

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Definitions:

Domestic Price

The price of goods or services within a country's borders, influenced by local supply and demand conditions.

World Price

the international market price of a good or service, influenced by worldwide demand and supply conditions.

Absolute Advantage

The ability of an entity to produce a good or offer a service more efficiently than its competitors, using fewer resources.

Production Data

Production data refers to quantitative information related to the amount, type, and efficiency of output produced by a company, industry, or economy over a specific period.