Which of the Following Is Not True in Regards to Direct

question 164

Multiple Choice

Which of the following is not true in regards to direct materials for a bakery?

• A) Flour and sugar would probably be direct materials.
• B) Eggs would probably be a direct material.
• C) Oil to lubricate factory machines would not be a direct material.
• D) Paper cupcake liners,that become part of the product,must be accounted for as direct materials.

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Definitions:

Cash Flows

The inflows and outflows of cash and cash equivalents, reflecting the operational, investing, and financing activities of a business.

Wages and Salaries

Compensation paid to employees for their labor, including hourly pay (wages) and fixed annual or monthly pay (salaries).

Operating Activities

Operating activities involve the core business functions of a company, including production, distribution, and sales, determining cash flow from primary business operations.

Interest Expense

The monetary burden placed on an entity due to borrowing capital over a specified timeframe.