Which of the Following Would Be Considered a Product Cost

question 148

Multiple Choice

Which of the following would be considered a product cost for a manufacturing business?

• A)salary of the sales manager
• B)salary of the CEO
• C)salaries of the accounting staff
• D)salary of the production manager

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Definitions:

Equity Risk

The risk of loss associated with fluctuations in the price of equities or stocks.

M&M Proposition I

A principle in corporate finance that asserts the market value of a firm is unaffected by the capital structure, assuming no taxes and perfect markets.

M&M Proposition II

A theory proposing that the cost of equity increases with the level of debt in a company, making the firm's weighted average cost of capital remain unchanged.

Cost of Equity

The return rate that shareholders require to invest in a company's equity, taking into account the risk associated with the investment.