Orion's Management Recently Committed to Incurring Direct Labour and All

question 93

Multiple Choice

Orion's management recently committed to incurring direct labour and all manufacturing overhead charges regardless of the number of units produced. Under throughput costing, the company's cost of goods sold would include charges for:

• A)selling and administrative costs.
• B)direct materials.
• C)direct labour and manufacturing overhead.
• D)direct materials, direct labour, and manufacturing overhead.
• E)direct materials, direct labour, manufacturing overhead, and selling and administrative costs.

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Definitions:

Ordinary Care

The degree of caution and attention to duty that a reasonably prudent person would use in similar circumstances.

Charge Back Rights

Charge back rights allow consumers to dispute a charge and potentially secure a refund for transactions found to be fraudulent or problematic.

Check Conversion

The process by which a paper check is transformed into an electronic payment, speeding up the transaction process and reducing the need for physical handling of the check.

Automated Clearing House

An electronic network for financial transactions, used for the transfer of funds between bank accounts, including direct deposits and bill payments.