If View Your World, a high- end window manufacturer, directly pays all of the transaction costs, the total cost to produce its windows includes all of the following except which one?
A)the cost of transporting the product to its customers
B)the cost of transporting the inputs to make the windows to the plants
C)the cost to add another production plant
D)the cost of producing the windows

Question

Quizplus · Accepted Answer

The cost to add another production plant is a capital expenditure and is not directly related to the production of the windows. It would be considered an indirect cost and not included in the total cost to produce the windows. The other options listed are all direct costs that would be included in the total cost.

If View Your World, a High- End Window Manufacturer, Directly