Under Absorption Costing, Which of the Following Costs Would Not

question 40

Multiple Choice

Under absorption costing, which of the following costs would not be included in finished goods inventory?

• A)hourly wages of assembly worker
• B)straight-line depreciation on factory equipment
• C)overtime wages paid to factory workers
• D)the salaries for salespeople

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Definitions:

Biocratic Control

A form of control characteristic of post-Fordist organizations in which the focus is on capturing “life itself” (bios) by erasing the distinction between work and life.

Direct Control

A management or governance approach where orders, rules, and decisions are explicitly stated and enforced by a central authority.

Coercive

Relating to or using force or threats to persuade someone to do something against their will.