Answer:
see below
Explanation:
Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost, accounts adjustments, and other non-recurring costs.
Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries, employee benefits, transport, depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.
Answer:
D) To gain access to low-cost inputs of production
Explanation:
Since Gazprom is the world's largest natural gas producer, its operation costs must be relatively low due to economies of scale. Since Exxon Mobile is setting a new plant in Azerbaijan, it will need a large supply of natural gas and the cheaper it is, the better. In this case, Gaxprom provides the raw material and Exxon Mobile processes the materials.
Answer:
a. They must be an integral part of the finished product and be a significant portion of the total product cost.
Explanation:
The Direct material is supply which is consumed during the production of a product. The direct material should be an integral part in the finished good. Consumables are not direct material. To become direct material the raw supplies should be a significant portion of the total cost. There is no direct material in a service business. The finished product should contain the direct material and the material must be an integral part of the final product.
Answer:
Punishing employees who are less productive. Firing is the only punishement I have ever known.
