Expenses in a Proprietary (Nonexpendable) Fund Would Not Include

question 7

Multiple Choice

Expenses in a proprietary (nonexpendable) fund would not include

• A) Salaries and wages.
• B) Long-term debt interest payments.
• C) Long-term debt principal retirement.
• D) Depreciation.

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Definitions:

Amortization

The periodic transfer of the cost of an intangible asset to expense or of a bond discount to interest expense.

Prime Cost

The direct costs of manufacturing a product, which include the raw materials and direct labor expenses.

Plant Janitor's Wages

The wages paid to janitorial staff within a manufacturing plant, considered part of factory overhead costs.

Machine Operator Wages

Compensation paid to workers who operate machinery as part of the manufacturing process.