The Two Types of Allowances That May Be Considered Before

question 83

Multiple Choice

The two types of allowances that may be considered before the division of profits and losses are:

• A) interest and salary allowances.
• B) interest and bonus allowances.
• C) salary and bonus allowances.
• D) bonus and liquidation allowances.

---

Definitions:

Salespersons

Individuals who sell products or services for a company, often working on commission and responsible for generating revenue for the business.

Direct Materials Used

The raw materials directly utilized in manufacturing a product, which are a component of the cost of goods sold.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture products.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, rent, and salaries for non-direct labor.