The term __________ is often restricted to the materials, labor, power, rent and other items used in making the product.
A) Indirect cost
B) Expense
C) General expense
D) Indirect expense
E) Cost

Question

Quizplus · Accepted Answer

The term "cost" is specifically restricted to the expenses that are directly related to the production of a product, including materials, labor, power, rent, and other expenses. Indirect costs, expenses, and general expenses are more broad and may include expenses that are not directly related to production. Indirect expenses often refer to expenses related to overhead, such as administrative or marketing expenses. Therefore, the best choice is E (Cost).

The Term __________ Is Often Restricted to the Materials, Labor