Manufacturing Costs That Cannot Be Classified as Either Direct Materials

question 35

Multiple Choice

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

• A) period costs.
• B) nonmanufacturing costs.
• C) selling and administrative expenses.
• D) manufacturing overhead.

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Definitions:

Interest Annually

Refers to the interest that is calculated and added to an account once per year.

Final Payment

The last payment made to settle a debt, completing all required payment obligations.

Economic Values

The importance or worth of goods, services, or resources in terms of their ability to fulfill needs and wants.

Annual Rate

The interest rate for a loan or investment expressed over a one-year period.