For a Manufacturing Company,which of the Following Is an Example

question 14

Multiple Choice

For a manufacturing company,which of the following is an example of a period rather than a product cost?

• A) Depreciation of factory equipment.
• B) Wages of salespersons.
• C) Wages of machine operators.
• D) Insurance on factory equipment.

---

Definitions:

Capital Budgeting

The process by which investors decide on the value of a project or investment by determining the future anticipated cash flows.

Future Projections

Estimates or forecasts about how situations, financial performances, or metrics might evolve over upcoming periods based on current data and trends.

Project's Scope

Project's scope refers to the specific goals, deliverables, tasks, costs, and deadlines involved in a project, defining its boundaries and what is or is not included in the work to be done.

Cash Flows

The sum total of financial transactions directed into and out of a corporation, markedly influencing its cash flow.