Direct Material Costs Plus Direct Labour Costs Are Known As

question 12

Multiple Choice

Direct material costs plus direct labour costs are known as:

• A)Prime costs
• B)Conversion costs
• C)Fixed costs
• D)Period costs

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Definitions:

Demand Curve

A graph that represents the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Easy Entry And Exit

A characteristic of competitive markets where there are minimal barriers for new firms to enter or exit the market.

Perfect Competition

A theoretical market structure that features no barriers to entry, a large number of sellers and buyers, completely homogenous products, and perfect information available to all market participants.

Chronic Excess Capacity

A situation where industries consistently operate below their full output capacity due to prolonged demand shortfall.