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Consider the following two businesses: 1. Business A specialises in landscaping the gardens of wealthy customers. 2. Business B manufactures a single, identical thermostat that
Consider the following two businesses:
1. | Business A specialises in landscaping the gardens of wealthy customers. |
2. | Business B manufactures a single, identical thermostat that is used as a component for refrigerators. |
Which of the above businesses would normally find it useful to distinguish between direct and indirect cost for the purposes of determining the full cost of each unit of output?
A.
Business A and Business B
B.
Business A only
C.
Neither Business A nor Business B
D.
Business B only
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