20.2.2. Based on Function

Try these first

1. 1.

   What are manufacturing costs?

   Hint

   Consider the costs involved in producing a product.

2. 2.

   Name an example of an administrative cost.

   Hint

   Think about the expenses for maintaining business operations.

3. 3.

   Which of the following is considered a manufacturing cost?

   • Office supplies
   • Factory salaries
   • Marketing expenses

   Hint

   Think about what costs are directly involved in making a product.

4. 4.

   True or False: Administrative costs contribute directly to producing goods.

   • True
   • False

   Hint

   Consider which costs help run the business rather than produce it.

5. 5.

   A company has an increase in administrative costs due to hiring more managerial staff. Discuss the potential impacts of this budget increase on the company's financial strategy.

   Hint

   Consider how changes in administrative costs affect overall business operations.

6. 6.

   A startup is struggling with high selling and distribution costs. Propose a strategy to reduce these costs while maintaining service standards.

   Hint

   Think about balancing lower costs with maintaining customer satisfaction.