The Three Major Cost Components of Manufacturing a Product Are

question 146

Multiple Choice

The three major cost components of manufacturing a product are:

• A) Marketing, selling, and administrative costs.
• B) General, selling, and administrative costs.
• C) Direct materials, direct labor, and factory overhead.
• D) Product costs, period costs, and variable costs.
• E) Indirect labor, indirect materials, and fixed expenses.

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Definitions:

Superior Rights

Legal or contractual rights that have precedence or higher priority over others in a specific situation.

Majority

A term used to describe persons who have reached the legal age of adulthood.

Equal Dignities Rule

The legal rule that provides that when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.

Consideration

In contract law, something of value exchanged between parties that is required for the formation of a legal contract.