Eldervale Winery is a producer of premium wine. Which of the following is an example of a downstream cost?
A) The costs associated with storing wine for customers
B) The costs associated with designing the labels on a wine bottle
C) The costs associated with researching a new variety of grapes
D) The costs associated with quality testing

Question

Quizplus · Accepted Answer

Downstream costs are costs incurred after a product is produced, such as storing and distributing the product. Storing wine for customers is an example of a downstream cost. Options B, C, and D are all examples of upstream costs, which are incurred before the production of a product, such as designing labels, researching a new variety of grapes, and quality testing.

Eldervale Winery Is a Producer of Premium Wine