The Cost of a Manufactured Product Generally Consists of Which

question 129

Multiple Choice

The cost of a manufactured product generally consists of which of the following costs?

• A) Direct materials cost and factory overhead cost
• B) Direct labor cost and factory overhead cost
• C) Direct labor cost, direct materials cost, and factory overhead cost
• D) Direct materials cost and direct labor cost

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Definitions:

C + I

An economic term that represents the sum of consumer spending (C) and investment spending (I); key components of the Gross Domestic Product (GDP) formula.

Investment

The allocation of resources, such as capital or time, in the hope of generating future profits or benefits.

Capacity Utilization Rate

The percentage of a firm's total production capacity that is actually being used in production.

Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.