Match the Costs That Follow to the Type of Product

question 40

Multiple Choice

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) .
-Factory supervisor's salary

• A)Direct labor
• B)Direct materials
• C)Factory overhead
• D)Not a product cost

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Definitions:

Total Costs

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

TC Curve

A graphical representation showing the total cost of producing different quantities of a good or service.

TVC Curve

A graphical representation showing the relationship between a firm's total variable costs and its output level.

TFC

stands for Total Fixed Costs, which are the costs that do not vary with the level of production or sales, such as rent or salaries.