Into Which One of the Following Accounts Would the Work

question 9

Multiple Choice

Into which one of the following accounts would the work of factory employees, that can be physically and directly associated with converting raw materials into finished goods, be categorized?

• A)Direct labour
• B)Indirect labour
• C)Manufacturing overhead
• D)Indirect materials

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Definitions:

Purchase Price

The amount paid or to be paid by the buyer to acquire a good, service, or asset.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from total revenue.

Costing Method

The technique or approach used by a business to determine the cost associated with a product or project.

Inventory Turnover

A ratio indicating how often a company sells and replaces its stock of goods within a certain period, reflecting the efficiency of inventory management.