Transportation-In Is

question 221

Multiple Choice

Transportation-in is

• A) part of cost of goods purchased.
• B) an operating expense.
• C) added to transportation-out as part of the calculation of cost of goods sold.
• D) part of purchases.

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Definitions:

Indirect Labor

Labor costs associated with support work that does not directly contribute to the manufacture of products or the provision of services, such as maintenance and supervisory wages.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including but not limited to utilities, rent, and salaries of support staff.

Direct Labor Cost

An alternate term for direct labor, emphasizing the expense associated with the wages and benefits paid to production workers.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.