Chapter 02 - Entrepreneurship II

Exercise Your Knowledge

1) Which type of cost is characterized by being directly linked to the production of goods and services?

a) Indirect costsFeedback: Incorrect! Indirect costs are general expenses in the business that are not directly traced to production. They are necessary for keeping the business functioning but are not directly linked to the production process.

b) Controllable costsFeedback: Incorrect! Controllable costs are non-essential costs that can be controlled by respective departments. They are not necessarily directly linked to the production of goods and services but can be controlled to improve working conditions and raise living standards.

c) Non-controllable costsFeedback: Incorrect! Non-controllable costs: Non-controllable costs are costs required for adding value to products and services, but they cannot be controlled or optimized without affecting business operations in the short run. They are not directly linked to the production process.

d) Direct costsFeedback: Correct! Direct costs are costs that are directly linked to the production of goods and services. They are variable costs that can be directly attributed to the production process.

Parabéns! Respostas enviadas. Aguarde.

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