The Unit of Account Is Defined as

question 20

Multiple Choice

The unit of account is defined as

• A) the medium of exchange.
• B) the exchange of goods and services directly for other goods and services.
• C) barter.
• D) an object that is accepted in return for goods and services.
• E) an agreed upon measure for stating prices of goods and services.

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Definitions:

Period Costs

Costs that are expensed in the period in which they are incurred, rather than being capitalized or included in the cost of goods sold, such as selling, general, and administrative expenses.

Direct Materials

Raw materials that can be directly associated with the production of goods, clearly identifiable and allocable to specific products or jobs.

Factory Overhead

The total of all indirect costs associated with manufacturing, including indirect labor, materials, and expenses not directly tied to the production of goods.

Manufacturing Costs

Expenses directly related to the production of goods, including direct labor, direct materials, and overhead costs.