Which of the Following Costs Is an Example of a Cost

question 7

Multiple Choice

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

• A) direct labor
• B) salary of a factory supervisor
• C) units-of-production depreciation on factory equipment
• D) direct materials

Calculate depreciation and its adjustments in intercompany asset transactions.

Calculate and adjust for intercompany dividends received.

Understand the impact of intercompany transactions on consolidated net income and retained earnings.

Compute the impact of inventory transactions on consolidated financial statements.

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Definitions:

Office Equipment

Tangible items used in an office setting, such as computers, desks, and chairs, necessary for daily operations.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of economic benefits.

Accounts Receivable

The money owed to a business by its clients or customers for goods or services provided on credit.

Consulting Work

Professional services provided by experts to advise businesses in various areas of expertise.