Identify the Factors That Must Be Considered in Order to Assess

question 34

Short Answer

Identify the factors that must be considered in order to assess whether a dealing is fair.

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Definitions:

Period Costs

Costs that are expensed in the period they're incurred, not directly tied to production activity, such as selling and administrative expenses.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services in manufacturing.

Direct Labor

The wages and benefits paid to workers who are directly involved in the production of goods or services.

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the production of goods.