Which of the Following Costs Incurred by a Bus Manufacturer

question 31

Multiple Choice

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

• A)the wages paid to assembly-line production workers
• B)the tires for buses
• C)the windshields for buses
• D)the depreciation on factory building

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Definitions:

Short-Run Average Total Cost Curve

A graphical representation that shows how the average total cost of production changes as the quantity produced changes in the short run.

Spreading Effect

The process by which increased investment leads to greater levels of income and consumption.

Diminishing Returns

A rule indicating that after reaching a specific threshold, further investments in a given sector will not yield higher profits at the same rate if all other factors stay unchanged.

Marginal Cost

The heightened expense incurred by fabricating an extra unit of a product or service.