Which of the following is NOT a direct cost of processing operations performed in the beneficiary developing country?
a) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job-training, and the cost of engineering, supervisory, quality control, and similar personnel
b) General expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salaries, commissions, or expenses
c) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise
d) Costs of inspecting and testing the specific merchandise
e) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific merchandise
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The Answer is: B
Citation: 19CFR10.178
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