Which of the Following Should Not Be Included in Direct

question 35

Multiple Choice

Which of the following should not be included in direct materials costs?

• A)Invoice costs of direct materials.
• B)Delivery charges on shipments to customers.
• C)Materials storage costs.
• D)Materials handling costs.
• E)Incoming freight charges.

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Definitions:

Illusory Promise

A promise that is vague or made in such a way that it does not actually commit the promisor to any course of action.

Enforceable Contract

A legal agreement between parties that is valid and recognized by the law, allowing for it to be enforced in a court of law.

Accord And Satisfaction

An agreement between two parties where a dispute is settled by agreeing on a less than what is owed, and the performance of the agreement fully satisfies the debt.

Latent Injury

An injury that is not immediately apparent and may become manifest only after some time has passed.