Direct Material Cost Is an Example of ________

question 75

Multiple Choice

Direct material cost is an example of ________.

• A) conversion costs
• B) discretionary costs
• C) engineered costs
• D) downsized costs

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Definitions:

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental damage, public health issues, or other societal impacts.

Texting While Driving

The act of composing, sending, or reading text messages, emails, or making similar use of the web on a mobile phone while operating a motor vehicle.

Economically Efficient

A situation in which resources are allocated in a way that maximizes the net benefit to society.

Marginal Private Benefit

Marginal Private Benefit is the additional benefit or satisfaction received by consumers or producers for consuming or producing one more unit of a good or service.