Indirect Costs Incurred in Manufacturing Autos Include All of the Following

question 165

Multiple Choice

Indirect costs incurred in manufacturing autos include all of the following EXCEPT:

• A)cost of the engines.
• B)machinery depreciation in the factory.
• C)plant utilities.
• D)plant supervisor salary.

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Definitions:

Goods and Services

Refers to tangible products and intangible activities that fulfill the needs or wants of consumers.

Factors of Production

Resources used in the production of goods and services, including labor, capital, land, and entrepreneurship.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.

Production Possibilities

The various combinations of goods and services that can be produced within an economy given available resources and technology.