Which of the Following Would Be Least Likely Classified as a Direct

question 31

Multiple Choice

Which of the following would be least likely classified as a direct cost of a business segment?

• A)Shipping
• B)Sales commissions
• C)Rent
• D)Direct material

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Definitions:

Downward-Sloping

A characteristic of demand curves in economics, indicating that demand decreases as the price increases.

FICA Tax

A U.S. federal payroll tax that funds Social Security and Medicare, required to be paid by both employees and employers.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Labor

The human effort, including both physical and mental, used in the production of goods and services.