Which of the Following Should Not Be Included in Direct

question 194

Multiple Choice

Which of the following should not be included in direct materials costs for a bike manufacturer?

• A)Tires.
• B)Machine lubrication oil.
• C)Seats.
• D)Pedals.
• E)Handlebars.

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Definitions:

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain.

Human Capital

The stock of competencies, knowledge, social and personal attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Physical Capital

Assets that are tangible, such as machinery, buildings, and equipment, which are used in production to create other goods or services.

Production Function

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