Match the Costs That Follow to the Type of Product

question 40

Multiple Choice

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) .
-Factory supervisor's salary

• A)Direct labor
• B)Direct materials
• C)Factory overhead
• D)Not a product cost

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Definitions:

Gross Profit

The difference between the revenue generated from goods or services sold and the cost of goods sold (COGS), before deducting overhead, payroll, taxation, and interest payments.

Operating Expenses

Expenses incurred during the ordinary course of business operations, including costs related to sales, administration, and general activities.

Net Income

The remaining revenue after all costs, expenses, and taxes have been subtracted from a company's total revenue; essentially, a company's profit.

Periodic Inventory

An inventory system in which the inventory count is conducted at specific periods, determining the cost of goods sold by beginning inventory plus purchases minus ending inventory.