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A Business Executive Who Buys a Portable Computer So That

question 159

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A business executive who buys a portable computer so that she can work on airplanes is trying to reduce the cost of traveling.


Definitions:

Direct Labour

The labor costs directly attributable to the production of goods or services, typically wages paid to workers who are directly involved in manufacturing.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the manufacturing cost is managed to meet that selling price.

Mark-up

The amount added to the cost price of goods to cover overhead and profit.

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