Which one of the costs below is NOT a production cost? A) The wages p

Which one of the costs below is NOT a production cost?

A) The wages paid to workers
B) The raw materials for manufacturing products
C) The dividends paid to shareholders
D) The shipping costs that get the product to the customer

 

 

ANSWER

Answer: C
Explanation: C) Production costs include, among other items, the wages paid to workers, the raw materials for manufacturing products, the overhead (such as electricity, water, plant space, and so on), and the shipping costs that get the product to the customer.

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