Goods Purchased for Future Use in the Business, Such as Supplies

question 186

Multiple Choice

Goods purchased for future use in the business, such as supplies, are called:

• A)prepaid expenses.
• B)revenues.
• C)stockholders' equity.
• D)liabilities.

---

Definitions:

Manufacturing Overhead Costs

Indirect costs related to manufacturing, including costs associated with operating the factory outside of direct materials and labor.

Machine-Hours

The total operational hours of machinery used in the production process, often used as a basis for allocating manufacturing overhead costs.

Direct Labor-Hours

The total hours worked by employees that can be directly attributed to the production of a specific good or service.

Manufacturing Overhead

Indirect costs related to manufacturing, not including direct materials or direct labor.