Which of the Following Would Not Be Associated with an Expense

question 33

Multiple Choice

Which of the following would not be associated with an expense?

• A) Using supplies.
• B) Paying off an account payable.
• C) Paying for electricity used by production equipment.
• D) Paying wages for production workers.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Continuous Process

A production method used to manufacture, produce, or process materials without interruption.

Conversion Cost

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished goods.

Equivalent Unit

In cost accounting, it represents a measure that converts the work done on partial units of output into the amount of completed units that could have been produced with that amount of work.