Reference: Charlie's Chocolate Factory Manufactures Chocolate Bars and Ships Them Directly

question 31

Multiple Choice

Reference:
Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and retailers across the country. The company has two product lines: milk chocolate bars and chocolate covered almonds. Classify the following company's expenses if the cost object is a single product line (either milk chocolate bars or chocolate covered almonds) .
-Salaries for milk chocolate bars production line workers 88)

• A)Direct product cost.
• B)Indirect product cost.
• C)Indirect period cost.
• D)Direct period cost.

---

Definitions:

Spot Rate

The current market price used for immediate delivery of a financial instrument or commodity.

Interest Rate

This is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Forward Rate Market

Refers to a financial market that deals with contracts specifying the rate at which currencies, securities, or commodities will be exchanged at a future date.

Spot Rates

The current price at which a particular security, commodity, or currency can be bought or sold for immediate delivery.