Which of the Following Is NOT a Factor in Determining

question 129

Multiple Choice

Which of the following is NOT a factor in determining whether a cost is direct or indirect?

• A) The cost can be identified specifically with a given cost objective.
• B) The identification of the cost is economically feasible.
• C) The cost objective used.
• D) The manager's preference.

---

Definitions:

Industry

It refers to the collection of businesses and operations involved in the production, manufacturing, or distribution of goods and services in a specific sector.

Four-firm Concentration Ratio

A metric that shows the total market share controlled by the four largest firms within an industry.

Pure Competition

A market structure characterized by a large number of small firms, similar products, and free entry and exit, leading to perfect competition.

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and often strategic behavior among firms.