Match Each Definition That Follows with the Term (A-E) It

question 106

Multiple Choice

Match each definition that follows with the term (a-e) it defines.
-Also referred to as capital budgeting

• A)Capital investment analysis
• B)Time value of money concept
• C)Net present value method
• D)Average rate of return
• E)Cash payback period

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Definitions:

Indirect Materials

Materials used in the production process that are not directly traceable to individual products, like lubricants and cleaning supplies.

Indirect Labor

Workers who support the production process but do not directly contribute to the manufacturing of the product, such as maintenance and supervisory staff.

Inventoriable Costs

Expenses directly tied to the production of goods, including materials and labor, capitalized as inventory until sold.

Direct Materials

Raw materials that are directly traceable to the manufacturing of products and significantly contribute to the product's cost.