Long-Term Investments Appear in the Property, Plant, and Equipment Section

question 112

True/False

Long-term investments appear in the property, plant, and equipment section of the statement of financial position.

---

Definitions:

Conversion Cost

The combined cost of direct labor and manufacturing overheads which are incurred to convert raw materials into finished goods.

Direct Materials

Initial materials specifically allocated for the making of certain goods or provision of services.

Factory Overhead

Indirect manufacturing costs not directly associated with the production of goods, such as depreciation of equipment, maintenance, and utilities.

Equivalent Units

A concept in cost accounting used to denote the amount of finished goods units that could have been produced given the total amount of production inputs.