Ivan Will Graduate from Great State University This Year

question 352

Multiple Choice

Ivan will graduate from Great State University this year. He has accumulated $39,000 in student loans during his four years at college. An accountant would classify the loans as

• A) assets.
• B) liabilities.
• C) owners' equity.
• D) intangibles.

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Definitions:

Machine Setups

The preparations and adjustments made to machines before starting a production run, potentially including configuration for different products.

Activity-Based Costing

A costing methodology that assigns expenses to products and services based on the activities that go into producing them.

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, including costs associated with running the factory such as utilities and maintenance.

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as utilities and rent.