The Owner of a Company That Produces Copy Paper Once

question 117

Multiple Choice

The owner of a company that produces copy paper once said,"People buy whatever copy paper is the cheapest,so I spend my time trying to find ways I can cut my price." What kind of orientation toward marketing does this owner have?

• A) production
• B) sales
• C) discount
• D) customer

---

Definitions:

Conversion Cost

The combined costs of direct labor and manufacturing overheads, which are necessary to convert raw materials into finished goods.

Direct Materials

Key substances exclusively used in the generation of specific products or execution of services.

Period Cost

Costs that are expensed in the period in which they are incurred, typically related to selling, general, and administrative activities rather than production.

Selling and Administrative Expense

The combined total of all expenses directly related to the selling of products and the administration of a business.