Which Part of the Value Chain Would Depreciation on a Factory

question 173

Multiple Choice

Which part of the value chain would depreciation on a factory be classified as?

• A)Design
• B)Distribution
• C)Research and development
• D)Production

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Definitions:

Carrying Costs

Expenses associated with maintaining inventory, including storage, insurance, and spoilage costs.

Ordering Costs

Expenses incurred in placing and receiving orders for goods, including transportation, handling, and clerical costs.

Option Contract

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified timeframe.

Futures Contract

A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.