An Example of a Direct Cost in the Production of a Computer

question 36

Multiple Choice

An example of a direct cost in the production of a computer is:

• A)depreciation of production equipment.
• B)production labor costs.
• C)salary of the vice president of production.
• D)material warehouse costs.

---

Definitions:

Merge

The combination of two or more entities (such as companies) into a single entity, often with the goal of enhancing competitive advantage or expanding market reach.

Vertically Integrated

A company's consolidation of all or part of the production process and supply chain within itself, controlling different stages of production usually to increase the company's power in the marketplace.

Competitive Market

A market structure where numerous producers compete to sell their goods or services to many buyers, leading to efficient pricing and innovation.

Market Price

The present cost at which a product or service is available for purchase or sale in the marketplace.