If the Cost Object Is the Cosmetics Department of a Large

question 10

Multiple Choice

If the cost object is the cosmetics department of a large department store which of the following is a direct cost?

• A) Advertising costs for the store's annual stock take sale.
• B) Brand specific cosmetic product training.
• C) The payroll department manager's yearly bonus payment
• D) Security staff wages for the store.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the accounting books but not yet cashed or cleared by the bank.

Automatic Transfer

A banking service that automatically moves funds from one account to another at scheduled times or under specific conditions.

Adjusted Cash Balance

The cash amount shown on a company's books after adjustments have been made for checks outstanding, deposits in transit, and other discrepancies.

Check Register

A record kept by an individual or institution to track checks written, deposits made, and the current balance of a checking account.