Debts That Need Not Be Repaid for at Least One

question 18

Multiple Choice

Debts that need not be repaid for at least one year are referred to as _____.

• A) expenses
• B) current assets
• C) long-term liabilities
• D) fixed assets
• E) current liabilities

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Definitions:

Overhead Rate

A measure used to allocate overhead costs to products or services based on a predetermined formula.

Direct Costs

Direct costs are expenses that can be directly attributed to a specific cost object, such as materials and labor directly involved in producing a product.

Indirect Costs

Expenses not directly tied to the production of a product or service, such as rent, utilities, and administrative salaries.

Cost Object

Any item for which a separate measurement of costs is desired, such as a product, service, project, or department.