Which of the Following Costs Are Not Included in Finished

question 187

Multiple Choice

Which of the following costs are not included in finished goods inventory?

• A) direct labor
• B) factory overhead
• C) chief financial officer's salary
• D) direct materials

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Definitions:

Concentration Ratio

A measure indicating the market share of the largest firms in an industry, used to determine the market's level of competition.

Technological Opportunities

The potential for firms to develop innovations or improve processes due to advances in technology.

R&D Expenditures

Funds allocated by a company towards research and development efforts aimed at innovation and improving products or processes.

Productive Efficiency

A state where economy or industry can no longer produce additional amounts of a good without lowering the production level of another product.