When Your Grandfather Keeps a Bundle of $100 Dollar Bills

question 72

Multiple Choice

When your grandfather keeps a bundle of $100 dollar bills behind a brick in the basement, this is an example of dollars serving as:

• A)bank reserves.
• B)a medium of exchange.
• C)a unit of account.
• D)a store of value.

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Definitions:

Direct Materials Used

The raw materials directly traceable to the production of goods, considered part of the cost of goods sold.

Direct Labor

The expense associated with paying workers who directly contribute to manufacturing products or delivering services.

Manufacturing Overhead

Indirect factory-related costs that are not directly tied to the production of a specific product, such as the cost of maintaining factory equipment.

Product Costs

The costs directly related to the creation of a product, including raw materials, labor, and overhead.