An Example of a Direct Cost in a Car Repair

question 87

Multiple Choice

An example of a direct cost in a car repair shop would include:

• A)parts used in repair.
• B)supervisory labor.
• C)depreciation on tools.
• D)property taxes on car repair shop.

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Definitions:

FIFO

An inventory valuation method where the first items placed into inventory are the first ones sold; stands for First-In, First-Out.

Inventory Costing

The method used to assign costs to inventory, affecting the cost of goods sold and ending inventory valuations.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Liabilities

Financial obligations or debts owed by a company to creditors, typically classified as either current or long-term.