Duties May Be Used to Encourage Local Input

question 61

True/False

Duties may be used to encourage local input.

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Definitions:

Variable Manufacturing Cost Per Unit

The total variable costs involved in manufacturing a product, divided by the number of units produced.

Overhead Cost

Expenses related to the operation of a business that cannot be directly tied to a specific product or service, such as rent and utilities.

Setups

The process or cost of configuring machinery or equipment to change from producing one product to another.

Fixed Overhead Costs

Expenses that remain constant for a period of time irrespective of the level of outputs, like factory rent or salary of permanent employees.