Which of the Following Cannot Be Considered as Independent Demand

question 25

Multiple Choice

Which of the following cannot be considered as independent demand items?

• A)wholesale and retail merchandise items
• B)maintenance,repair,and operating supplies at a manufacturing company
• C)maintenance,repair,and operating supplies at a service firm
• D)raw material items that become part of the final product at a manufacturing firm
• E)service industry items such as hospital supplies or office supplies for law firms

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Definitions:

Product Cost

The total amount spent to produce a product, including raw materials, labor, and overhead costs directly tied to the production process.

Period Cost

Period cost refers to any cost that is not directly tied to the production of goods and is expensed in the period it is incurred.

Frosting

A sweet, creamy icing used for coating or decorating cakes and pastries.

Period Costs

Expenses that are not directly associated with manufacturing and are therefore recorded as expenses in the period in which they are incurred.