Which of the Following Is an Example of a Cost

question 106

Multiple Choice

Which of the following is an example of a cost of goods sold for a manufacturer of electric fans?

• A) overtime hours needed to fill a large summer order
• B) office phone bill
• C) sales commissions
• D) factory utilities

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Definitions:

Public Goods

Are goods that are non-excludable and non-rivalrous, meaning they can be consumed by one person without preventing the consumption of the good by another, and no one can be effectively excluded from using the good.

Government-Imposed Taxes

Levies authorized by the government on individuals, corporations, and goods.

Internalized

The process of incorporating or taking within oneself, often used in economics to describe the absorption of external costs or benefits by an entity.

Negotiation

The process by which two or more parties communicate and ideally reach an agreement or compromise on a matter of mutual interest.