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Component parts and materials are classed as which kind of item?
ACapital items that determine the scope of a company
BSupply items bought routinely in large quantities
CExpense items that are built into the end product
DService items used to support company operations
Answer & Solution
Correct answer: C. Expense items that are built into the end product
1. Component parts and materials are expense items rather than capital products.
2. Their defining feature is that they are built into the end product.
3. Some are custom made, such as a drive shaft or a computer case.
4. Others are standardized for sale to many industrial users.
5. Supplies never enter the final product, so they are a separate class.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.6 What Is a Product?_
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