Which of the Following Is NOT an Example of an Estimated

question 6

Multiple Choice

Which of the following is NOT an example of an estimated liability?

• A) contingencies
• B) employee benefits
• C) payroll deductions
• D) warranties

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Definitions:

Direct Materials

Raw materials that are directly attributable to the production process and are part of the finished product.

Factory Supplies

Consumable items used in a manufacturing process, excluding raw materials and labor.

Sales Commissions

A portion of the sale amount given to salespersons as a reward for selling products or services.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.