Match the Items Below for a Bakery to the Type

question 40

Multiple Choice

Match the items below for a bakery to the type of cost (a-d) . Answers may be used more than once.
-Depreciation expense-office

• A)Direct materials
• B)Direct labor
• C)Factory overhead
• D)Nonmanufacturing cost
• Challenging

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Definitions:

SML Approach

Refers to the Security Market Line approach, a graphical representation in the Capital Asset Pricing Model (CAPM) that depicts the relationship between risk and expected return for all securities.

Flotation Costs

Expenses incurred by a company in issuing new securities, including legal, administrative, and underwriting fees.

Computed NPV

The calculated Net Present Value based on a specific discount rate and series of cash flows.

Perpetual Cash Flows

Cash flows that are expected to continue indefinitely without an end.