Answer:
The answer is D. Factory overhead
Explanation:
Factory overheads are cost that cannot be traced to a specific unit. It is also called manufacturing overhead.
It relates to indirect materials and/or indirect cost. For example, water, electricity, cleaning. All these cost are not directly related to a specific unit, they are consumed by the whole business operations.
Answer:
The amount of maximum net loss is $100
Explanation:
The butterfly spread comprise of buying 100 options with the strike price of $60 and $70 and the selling 200 options with the strike price of $65.
The maximum loss is when the strike price is less than $60 or be greater than $70. The aggregate payoffs from the options will amount to $0.
The cost of setting up the butterfly spread is:
= 11 × 100 + 18 × 100 - 14 × 200
= $100
Therefore,the net loss will be $100
Market economy is the economic system which private businesses can operate freely with minimal state control
Greater resource prices increases the costs of production, thereby, reducing the incentive for firms to produce the good at each price.
The total cost incurred by a business to produce a product or provide services is referred to as the cost of production. Supplies and raw materials consumed during production, as well as labour costs, are often included in production costs.
Costs of Production
All of the direct and indirect expenses firms incur when producing a good or rendering a service are referred to as production costs. Various expenditures, including labour, raw materials, consumable manufacturing supplies, and general overhead, might be included in production costs. When a company produces a good or offers a service, it incurs production expenses, which are sometimes referred to as product costs. Numerous expenses are included in these costs. For instance, manufacturing expenses for manufacturers include the cost of the labour and raw materials required to make the product. Production expenses in the service sector are related to the labour needed to implement the service and any material costs associated with providing the service.
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