Critical to the Business Case Is the Identification of Both

question 54

Multiple Choice

Critical to the business case is the identification of both _________ and ________.

• A) costs; risks
• B) costs; benefits
• C) advantages; disadvantages
• D) assumptions; risks
• E) benefits; detriments

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Definitions:

Direct Labor Cost

The total cost of wages for labor directly involved in the production of goods or services.

Direct Labor Wage Rate

The rate of pay for workers who are directly involved in the production of goods or the provision of services.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Selling and Admin. Expense

Costs that are not directly tied to the production of goods or services but are necessary for selling products and managing the business.