All of the Following Could Be Included in the Cost

question 40

Multiple Choice

All of the following could be included in the cost of a product located in the final production department of a multi-step process except:

• A)The costs of materials, labor and overhead identifiable with that department.
• B)Marketing and distribution costs.
• C)The costs of service departments that have been allocated to production departments.
• D)The costs of prior production departments.

---

Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Premium, Discount, or Par

A classification to describe if a bond is trading above (premium), below (discount), or at its face value (par).

Market Rate

The ongoing market rate at which you can buy or sell an asset or service.

Contract Rate

The interest rate stated in a loan or lease agreement, dictating the rate at which interest accrues on the outstanding principal.