In Agencies or Established Businesses, Regular and Ongoing Administrative Costs

question 44

Multiple Choice

In agencies or established businesses, regular and ongoing administrative costs such as electricity, paper, and Internet services are often considered __________.

• A) Informal expenses
• B) Program budget expenses
• C) Overhead expenses
• D) Off-the-books expenses

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Definitions:

Specific Identification

An inventory costing method where each item of inventory is individually valued and tracked.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company.

Average Cost Formula

A method used in accounting to calculate the cost of goods sold and ending inventory by averaging the cost of goods available for sale.

Perpetual Inventory System

An inventory management system that continuously updates the quantity and value of inventory on hand after each transaction.