Which of the following is not a production cost?

Advertisement costs

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Material costs

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Wage costs

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Interest costs

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Solution

The correct option is A Advertisement costs
Advertisement is a selling cost and not a production cost as it is not directly related to the production of the good. Its is usually classified as a sunk cost or an indirect cost. All other costs are directly related to the production of a good.

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Which of the following costs affect the price of the product?

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