GK
BUSINESS MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the price charged by a supplier to purchase raw materials
|
|
|
the price charged to the customer by the business
|
|
|
Total Costs
|
|
|
Profit
|
Detailed explanation-1: -The cost of raw material refers to the amount necessary to buy the resources used by businesses to produce a product or even service. In many cases, the cost of raw materials guides businesses in establishing the final price of the item that they intend to sell.
Detailed explanation-2: -Direct Material Cost is the total cost incurred by the company in purchasing the raw material along with the cost of other components, including packaging, freight and storage costs, taxes, etc., that are related directly to the manufacturing and production of various products of the company.
Detailed explanation-3: -Production costs refer to the costs a company incurs from manufacturing a product or providing a service that generates revenue for the company. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.