Which of These Costs Is NOT an Indirect Production Cost

question 110

Multiple Choice

Which of these costs is NOT an indirect production cost for a manufactured chair?

• A)rental cost of factory building
• B)depreciation expense on factory equipment
• C)cost of legal staff to identify legal issues associated with the chair
• D)salary of factory supervisor

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Definitions:

Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.

Consumer Surplus

The imbalance between the funds consumers are willing to dedicate to a good or service and the funds they actually dedicate.

Consumer Surplus

The discrepancy in the total spend consumers are willing to shoulder for a product or service as opposed to what they actually disburse.