Costs Which Are Not Directly Required to Produce a Product

question 34

Multiple Choice

Costs which are not directly required to produce a product but are expensed in the income statement in the period in which they are incurred are called:

• A) period costs.
• B) fixed costs.
• C) product costs.
• D) miscellaneous costs.

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Definitions:

Loanable Funds

The money available for borrowing in the economy, which comes from savings and is used for investments and other purposes.

Supply Slopes

This term might be mistaken, but it likely refers to the representation of supply in economics, which traditionally slopes upward on a graph, indicating that as prices increase, suppliers are willing to provide more goods.

Financial Intermediaries

Entities such as banks and credit unions that serve as middlemen in financial transactions, facilitating funds' flow between savers and borrowers.

Bond Buyer

An investor or entity that purchases bonds, which are debt securities issued by corporations or governments.