Which of the Following Items of Cost Would Be Least

question 52

Multiple Choice

Which of the following items of cost would be least likely to appear on a performance report based on responsibility accounting for the supervisor of an assembly line in a large manufacturing situation?

• A)Direct labor
• B)Indirect materials
• C)Selling expenses
• D)Repairs and maintenance

---

Definitions:

Noncumulative

Pertaining to dividends, a feature allowing a company not to pay dividends in arrears to its shareholders.

Treasury Stock

Equities that were once sold to investors and later re-purchased by the entity that issued them, effectively reducing the quantity of stocks traded publicly.

Par Value

Par value is a nominal value assigned to a security, such as a stock or bond, at issuance, often used to determine legal capital or accounting value rather than market value.

Stock Dividend

A payment to shareholders in the form of additional shares of stock rather than cash.