Wages paid to a labour who was engaged in production activities can be termed as.a.imputed cost.b.direct cost.c.indirect cost.d.sunk cost.
Question
Wages paid to a labour who was engaged in production activities can be termed as:
a. imputed cost
b. direct cost
c. indirect cost
d. sunk cost
Solution
The wages paid to a laborer who is engaged in production activities can be termed as a direct cost.
Here's why:
A. Imputed Cost: This is a cost that is not actually incurred but is given a value in monetary terms for decision-making purposes. It's not applicable here because the laborer's wages are a real, tangible expense.
B. Direct Cost: This is a cost that can be directly attributed to the production of a specific good or service. The laborer's wages fall into this category because they are a direct part of the production process.
C. Indirect Cost: This is a cost that cannot be directly linked to the production of a specific good or service. Examples might include utilities or administrative salaries. The laborer's wages are not an indirect cost because they are directly tied to production.
D. Sunk Cost: This is a cost that has already been incurred and cannot be recovered. The laborer's wages are not a sunk cost because they are an ongoing, not a one-time, expense.
So, the correct answer is b. Direct Cost.
Similar Questions
otal of all direct costs is termed as .a.works cost.b.cost of production.c.prime cost.d.cost of sale
Julie works in the production department. Julie's wages are an example of ______ expenses for the production department.Multiple choice question.directindirect
____ are also known as direct costs A. average variable costs B. average fixed costs C. variable costs D. total fixed costs
actory overhead can be charged on the basis of -.a.material cost.b.direct expensesc.labour cost.d.prime cost.
overerhead cost is the total of .a.all specific costs.b.all indirect costs.c.indirect and direct costs.d.all direct costs.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.