Nonmanufacturing Costs Are Generally Classified into What Two Groups

question 128

Multiple Choice

Nonmanufacturing costs are generally classified into what two groups?

• A)Conversion costs and prime costs
• B)Direct materials and direct labor
• C)Marketing costs and administrative costs
• D)Direct labor and manufacturing overhead

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which need to be paid back in the future.

Owners' Equity

The portion of a company's assets that belongs to its owners or shareholders, representing their residual interest.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, ultimately providing a view of the company’s profitability.

Chief Financial Officer

A high-ranking executive responsible for managing the financial actions of a company, including financial planning, record-keeping, and reporting.