Which of the Following Would Not Be a Relevant Cost

question 105

Multiple Choice

Which of the following would not be a relevant cost in a special order of expensive clocks?

• A)Direct materials
• B)Direct labor
• C)Variable overhead
• D)Fixed overhead

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Definitions:

Slope

In mathematics, the measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Isocost

A line representing all combinations of inputs that have the same total cost.

Capital

Financial assets or the financial value of assets, such as cash or goods, used to generate income.

Isoquant

A curve on a graph representing combinations of inputs that result in the production of the same quantity of output, used in the analysis of production function and input optimization.