Payments That a fiRm Makes to Obtain Needed Resources Comprise

question 55

Multiple Choice

Payments that a firm makes to obtain needed resources comprise its

• A) costs.
• B) profits.
• C) capital.
• D) revenues.

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Definitions:

Direct Materials

Raw materials that are traceable to the manufacturing of a product and are an integral part of the finished product.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimated costs and activity levels.

Direct Materials Used

Direct Materials Used are raw materials that are directly incorporated into a finished product and are a major part of manufacturing costs.

Selling Expenses

Costs incurred directly and indirectly in selling and distributing a product or service, including advertising, sales salaries, and commission.