The Palace Confectionary Co Is a Small Business Located in the Northeastern

Multiple Choice

The Palace Confectionary Co is a small business located in the northeastern United States. The owner of Palace Confectionary is calculating the projected costs for the coming year. There is rent for the building; salaries for the retail employees; raw materials of sugar, chocolate, and other ingredients; wrappers for packaging of individual pieces of candy; boxes; and radio advertising. Palace's ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.

A) sunk costs
B) variable costs
C) direct costs
D) fixed costs
E) marginal costs