Business Products That Are Purchased Routinely, Do Not Become Part

question 279

Multiple Choice

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called

• A) raw materials.
• B) installations.
• C) accessory equipment.
• D) component parts.
• E) process materials.

---

Definitions:

Labor's Share

The portion of national income or output that is allocated to workers in the form of wages, salaries, and other forms of compensation.

Total Costs

The full price of manufacturing, which includes both constant and fluctuating expenses.

Labor Cost

The total expenditure incurred by a company to pay its employees, including wages, benefits, and taxes.

Total Cost Ratio

Represents the sum of all costs (fixed and variable) associated with production, expressed as a ratio over a specific period.