A Manager of a Large Retail Firm Is Interested in Knowing

question 4

Multiple Choice

A manager of a large retail firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?

• A)Direct materials.
• B)Direct labor.
• C)Factory overhead.
• D)Transportation costs paid by the retailer to transport the purchased product to its distribution location.
• E)None of the above.

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Definitions:

Demand Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Price Conscious

Being aware of and giving importance to the cost of goods and services when making purchasing decisions.

Demand

The desire combined with purchasing power for specific goods or services at a given time and price.

Lunchbox

A container used to carry food, often for consumption at work or school.