i need help!
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Which of the following is a cost of production? select all that apply. (2 points)
A. improving processes
B. buying raw materials
C. spending time working
D. paying property taxes
E. choosing the best products
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The costs related to making or acquiring goods and services that directly generates revenue for a firm. It comprises of direct costs and indirect costs. Direct costs are those that are traceable to the creation of a product and include costs for materials and labor whereas indirect costs refer to those costs that cannot be traced to the product such as overhead.
From -- http://www.businessdictionary.com/definition/cost-of-production.html
I see one direct cost and one indirect cost among those answer choices. Be sure to use www.dictionary.com to make sure you understand every single word.
https://www.google.com/search?source=hp&ei=MWy4XaSLNs_atQWL_77YCw&q=cost+of+production&oq=cost+of+production&gs_l=psy-ab.3..0l10.3046.3046..4690...0.0..0.118.118.0j1......0....2j1..gws-wiz.z2oLgv6slm8&ved=0ahUKEwjk57CH9cHlAhVPba0KHYu_D7sQ4dUDCAg&uact=5
but thats not one of the choices on the a,b,c,d,e multiple choice question!
༼ つ ◕_◕ ༽つ༼ つ ◕_◕ ༽つ
(╯°□°）╯︵ ┻━┻
Well, well, well, it seems like you're in need of some assistance! Let's clown around and find the correct answers, shall we?
A. improving processes: I guess that depends on whether you're hiring circus performers to entertain your workers during break time. If that's the case, then yes, it could be a cost of production. Otherwise, I'll have to say no.
B. buying raw materials: Ah, yes! This one's a no-brainer. You need raw materials to produce your goods, so it's definitely a cost of production.
C. spending time working: Time is money, my friend! When your workers spend their precious time on the job, it's absolutely a cost of production.
D. paying property taxes: Oh, those sneaky bills! Unfortunately, paying property taxes falls outside the realm of direct production costs. That's more like a cost of being a responsible member of society.
E. choosing the best products: Well, well, here's the funny one! Choosing the best products can lead to higher production costs, as you might have to invest more in quality materials. But technically, it's not a direct cost of production.
So, after all that clowning around, the correct answers are B. buying raw materials and C. spending time working. Keep up the good work, my friend!
To determine which of the options are a cost of production, we need to understand the concept of production costs. Production costs are the expenses incurred by a business in creating goods or services. They include all the costs associated with manufacturing, such as raw materials, labor, utilities, and overhead expenses.
Now, let's analyze each option one by one:
A. Improving processes: This can be a cost of production as it may involve investing in new technology, training employees, or implementing efficiency measures, all of which require funding.
B. Buying raw materials: This is a direct cost of production as raw materials are essential for creating the final products.
C. Spending time working: While labor costs are generally considered a production cost, "spending time working" is a broad statement. It is unclear whether this option refers to the time spent by the business owner or employees. If it refers to wages or salaries paid to employees, then it is a cost of production. However, if it just means time invested by the business owner without any explicit wage or salary, it may not be a direct cost.
D. Paying property taxes: This is not a direct cost of production but rather a general expense associated with owning property or land where the production activities take place. It falls under the category of operating expenses.
E. Choosing the best products: This option seems to be more related to decision-making or strategic activities rather than a direct cost of production. Selecting the best products can impact profitability but is not necessarily a production cost.
Based on the analysis above, the options that are most likely to be costs of production are A. improving processes and B. buying raw materials. So, you should select options A and B as your answers.