Jane Cook Started a Small Manufacturing Firm Two Years Ago

question 123

Multiple Choice

Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a

• A) certified auditor.
• B) certified bookkeeper.
• C) managerial bookkeeping clerk.
• D) private accountant.
• E) public accountant.

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Definitions:

Raw Materials

are the basic, unprocessed inputs used in the manufacture of goods and products.

Indirect Materials

These are materials used in the production process that are not directly traceable to the finished product.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods, considered a variable cost in manufacturing.