Which of the Following Would NOT Be Considered Part of the Cost

question 36

Multiple Choice

Which of the following would NOT be considered part of the cost of machinery and equipment?

• A)Repairs and maintenance after start-up
• B)Delivery charges
• C)Installation costs
• D)In-transit insurance costs

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Definitions:

Short-run Cost Function

The costs a company incurs in the production of goods or services within a short period, considering some inputs are fixed.

Long-run Cost Curve

A graphical representation showing the minimum cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Hair Dryers

Electrical devices used to blow dry hair by emitting warm air.

Economies of Scope

Cost advantages that arise from a firm or company expanding its product line or markets, exploiting shared resources or technologies.