Which of the Following Should Not Be Classified as a Manufacturing

question 75

Multiple Choice

Which of the following should not be classified as a manufacturing cost?

• A)Indirect factory labor costs,such as salaries of plant security guards.
• B)Direct materials used in the production process.
• C)Utility bills related to factory operations.
• D)Commissions paid to salespeople.

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Definitions:

Lower Cost

The strategy or condition of achieving a reduction in expenses, leading to a competitive pricing advantage or higher profit margins.

Cost Focus

A business strategy aiming to become the lowest-cost producer in an industry for a particular segment or niche.

Generic Business Strategy

A basic framework for a business approach focusing on cost leadership, differentiation, or focus/niche to achieve competitive advantage.

Cost Focus

A business strategy that aims to become the lowest-cost producer in an industry or market segment to gain a competitive advantage.