Which of the Following Manufacturing Costs Is an Indirect Cost

question 157

Multiple Choice

Which of the following manufacturing costs is an indirect cost of producing a product?

• A) Oil lubricants used for factory machinery
• B) Commissions for sales personnel
• C) Hourly wages of an assembly worker
• D) Memory chips for a microcomputer manufacturer

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Definitions:

Productivity

The efficiency of production measured by the output per unit of input.

Standard of Living

The measure of fiscal prosperity, convenience, material assets, and critical needs granted to a select socioeconomic layer or specific geographic territory.

Goods and Services

Physical items (goods) and intangible assistance or work (services) provided to satisfy the needs and wants of consumers.

Total Supply of Money

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid assets.