The Enterprise Company Manufactures a Single Product $\quad\$ 75$ Indirect (Fixed) Costs
Production Costs

question 20

Multiple Choice

The Enterprise Company manufactures a single product.At the normal level of production of 100 000 units per annum the costs of production are:
Direct (variable) costs per unit $\quad\$ 75$
Indirect (fixed) costs
Production costs $\quad \$ 250000$
Finance and administration costs $\quad \$ 50000$
The unit cost of manufacture for the product using a direct costing approach is:

• A) $77.50
• B) $75
• C) $78
• D) none of the above

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Definitions:

Privity Of Contract

A doctrine in contract law which states that contracts are only binding on the parties signing the agreement and no third party can enforce the contract or be sued under it.

Strict Liability

A legal doctrine holding an individual or entity responsible for damages or harm caused without the need for proof of negligence or fault.

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This term refers to something that has been changed or altered from its original form.

Snowmobile

A motorized vehicle designed for travel over snow, typically operated on open terrain or established trails.