Which of the Following Is an Example of Direct Materials

question 247

Multiple Choice

Which of the following is an example of direct materials cost for an automobile manufacturer?

• A) cost of oil lubricants for factory machinery
• B) cost of wages of assembly worker
• C) salary of production supervisor
• D) cost of interior upholstery

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Definitions:

Term Structure

The relationship between interest rates (or yields) and different maturities of debt securities, often depicted as a curve.

U.S. Treasuries

Debt securities issued by the U.S. Department of Treasury used to finance government spending as an alternative to taxation.

Interest Rates

Interest rates are the cost of borrowing money or the return for saving and depositing money, typically expressed as a percentage.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments but are issued at a substantial discount to their face value, maturing at par.