The Cost of Lighting the Factory Would Be Classified as ________

question 83

Multiple Choice

The cost of lighting the factory would be classified as ________ when determining the cost of a manufactured product.

• A)an indirect cost
• B)a direct cost
• C)a period cost
• D)none of the above

---

Definitions:

Units

Basic quantities or measures adopted to quantify and measure variables.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit.

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.