Which of the Following Is Not an Inventoriable Cost of a Manufacturer

question 184

Multiple Choice

Which of the following is not an inventoriable cost of a manufacturer?

• A) Sales commissions paid to sales representatives who sell the products made by the manufacturer
• B) Wages paid to assembly-line workers
• C) Plant depreciation incurred
• D) Property taxes on plant

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Definitions:

Annuity Due

A type of annuity in which payments are made at the beginning of each period, typically used in leases and rental agreements, resulting in higher present value compared to ordinary annuities.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, frequently used in the evaluation of investment opportunities.

Investment

An asset or item acquired with the goal of generating income or appreciation in value.

Outstanding Balance

The amount of money owed on a loan or credit line that remains to be paid off.