Which One of the Following Items Is Normally Not a Manufacturing

question 8

Multiple Choice

Which one of the following items is normally not a manufacturing cost?

• A) Direct materials.
• B) Factory overhead.
• C) General and administrative expenses.
• D) Direct labor.
• E) Conversion cost.

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Definitions:

Fiscal Policy

Governmental use of spending and taxation to influence the economy.

Government Spending

Expenditures by the government for its operations, programs, and debt payments, which can influence the economy's overall performance.

Taxation

The process or system through which governments levy charges on citizens and corporate entities to finance government spending and various public expenditures.

Inflation

The increase in the general price level of goods and services, leading to a decline in purchasing ability.