Which of the Following Costs Is an Indirect Product Cost

question 158

Multiple Choice

Which of the following costs is an indirect product cost?

• A) president's salary
• B) wages of assembly workers
• C) materials used
• D) property taxes on plant facilities

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Definitions:

Wage Rate

The amount paid to an employee per unit of time (e.g., per hour or year) for their labor.

Production Function

A mathematical model in economics that describes the relationship between inputs and the maximum output of goods or services produced.

Demand Curve

A graph showing the quantity of a good that consumers are willing to buy at different prices, typically downward sloping.

Wage Rate

The compensation paid to employees for their labor, typically expressed as an amount per hour, day, or unit of work.