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Question
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Options
Direct cost
Indirect cost
Sunk cost
Implicit cost
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Solution
Wages paid to a labour who was engaged in the production activities can be termed as direct costs.
Explanation:
Wages paid to labour engaged in production activities are referred to as direct costs. A direct cost is a price entirely related to the production of certain goods or services.
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