Direct expenses are those which can be identified with particular products. Which of the following items is a direct cost?

A The rent of the factory in which products are made
B The salaries of the production supervisor
C A royalty paid to the holder of a patent after each item is produced
D The cost of the glue used to attach labels to the products

Correct Answer: The cost of the glue used to attach labels to the products

Bissoy MCQ

Related Questions

For large farms to be as productive as they can be, their owners need to invest heavily in expensive machinery. This typically requires them to go into considerable debt, and interest on this debt is then a significant fixed cost. This high fixed cost makes those farmers vulnerable to operating losses if the price of their products drop.

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