Payroll Costs for Factory Employees Who Do Not Work Directly

question 108

Multiple Choice

Payroll costs for factory employees who do not work directly on the product are considered

• A)direct labor.
• B)selling expenses.
• C)manufacturing overhead.
• D)administrative costs.

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Definitions:

Bonds Issued

The total number of bonds that a company or government has sold to investors but has not yet redeemed.

Effective Interest Method

An accounting practice used to amortize bond premiums or discounts over the life of the bond in a way that reflects a constant rate of interest.

Straight-Line Method

A depreciation method that allocates an equal amount of the asset's cost to each year of the asset's useful life.

Issuance Price

The price at which shares or bonds are sold to the public for the first time.