Which One of the Following Items Is Typically an Example

question 134

Multiple Choice

Which one of the following items is typically an example of an indirect cost of a cost object?

• A)courier charges for shipment delivery
• B)manufacturing plant electricity
• C)direct manufacturing labour
• D)wood used for furniture manufacture
• E)refundable sales tax on direct materials

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Definitions:

Capital

Assets used in the production of goods and services, including physical tools, machinery, buildings, as well as intangible items like software or intellectual property.

Labor

The human effort, whether physical or mental, expended in the production of goods and services.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output of goods or services.

Technically Feasible

A term describing any production process, product, or innovation that can be accomplished with current technology and methodology.