Which of the Following Is Classified as Current Assets

question 130

Multiple Choice

Which of the following is classified as current assets?

• A)Office equipment.
• B)Patent.
• C)Unearned revenue.
• D)Office supplies.
• E)Land.

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output, such as utilities for machinery, that are associated with the manufacturing process.

Direct Labor-Hours

The measure of the amount of time workers spend directly producing goods or services, important in calculating labor expenses and production efficiency.

Fixed Manufacturing Overhead

Represents the set of costs that are required to operate a manufacturing facility, which do not vary with the volume of production.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs.