Which One of the Following Costs Should NOT Be Considered

question 42

Multiple Choice

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

• A) the cost of the hamburger patty in the burger they ordered.
• B) the wages of the employee who takes the customer's order.
• C) the cost of heating and lighting the kitchen.
• D) the salary of the outlet's manager.

---

Definitions:

Principal-Agent Problem

A conflict in priorities between a person or group (the agent) making decisions on behalf of another person or group (the principal).

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with production or consumption of goods and services.

Corporate Jet

A private aircraft owned or leased by a company for the transportation of its executives, employees, or clients.

Automobile Manufacturer

A company that engages in the design, production, marketing, and selling of motor vehicles.