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Question
When there is no production __________ will not be incurred.
When there is no production __________ will not be incurred.
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Solution
The correct option is A raw material cost
Raw material costs are directly involved with the production process and thus these costs only have to be paid when production starts and is directly proportion to the amount of output produced. If the firm is not producing any output they do not have to be paid.
Raw material costs are directly involved with the production process and thus these costs only have to be paid when production starts and is directly proportion to the amount of output produced. If the firm is not producing any output they do not have to be paid.
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