Which of the Following Statements Best Describes a Good

question 145

Multiple Choice

Which of the following statements best describes a good?

• A)Goods are physical objects.
• B)Goods are the only currency that can be used in an exchange.
• C)Goods are intangible concepts and thoughts about ideas or causes.
• D)Goods are the benefits organizations receive for selling products and services.
• E)Goods can be either tangible or intangible.

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Definitions:

Direct Materials Cost

Direct materials cost represents the total cost of raw materials directly used in the production of a product, crucial for calculating the cost of goods sold.

Factory Overhead Cost

Indirect costs related to manufacturing that are not directly traceable to a product, including costs for maintenance, utilities, and indirect labor.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.

Product Costs

Costs that are directly associated with the creation of a product, including materials, labor, and overhead.