Expenditures for Materials That Go Directly into the Creation of a Product

question 24

Multiple Choice

Expenditures for materials that go directly into the creation of a product or service are called:

• A)indirect labor costs.
• B)direct labor costs.
• C)maintenance costs.
• D)raw material costs.
• E)utility costs.

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Definitions:

Purchased

Acquired goods or services in exchange for money or other compensation, indicating a transaction where ownership changes hands.

Payroll

Payroll is the total sum of all compensation a business must pay to its employees for a set period or on a given date, including salaries, wages, bonuses, deductions, and withholdings.

Adjusting Entry

A journal entry made in accounting to update the balances of accounts at the end of an accounting period.

Workweek

A fixed time period, typically structured from Monday to Friday, used to calculate hours worked and wages for employees.