Match Each of the Following Items with the Appropriate Description

question 19

Multiple Choice

Match each of the following items with the appropriate description in determining whether sales/use tax typically must be collected.
-Groceries purchased by an individual and taken home for meal preparation there.

• A)Taxable
• B)Not taxable

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Definitions:

Direct Materials Cost

The expenditure for raw materials that can be directly traced to the production of goods.

Traditional Costing

An accounting method that assigns all manufacturing overhead costs to products based on a predetermined overhead rate, regardless of the activities that generated the costs.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they require.

Direct Labor-Hours

The total amount of time spent by workers directly involved in the manufacturing activities.