What Type of Costs Typically Represent a Much Higher Percentage

question 72

Multiple Choice

What type of costs typically represent a much higher percentage of product costs than direct labour?

• A)value-added costs
• B)activity costs
• C)overhead costs
• D)consumption costs

---

Definitions:

Demand Curve

A graphical representation that displays the relationship between the price of a good or service and the quantity demanded by consumers over a period of time.

Average Total Cost

The sum of all production costs (both fixed and variable) divided by the amount of product made.

ISO Quality Standards

A series of frameworks and guidelines established by the International Organization for Standardization to help companies ensure their products and services meet customer and regulatory requirements.

Total Quality Management

An extensive management approach focused on continuously improving the quality of products and services to achieve customer satisfaction.