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.

---

Definitions:

Pension Expense

The cost recognized by a company for the benefits provided to employees in retirement pension plans.

Fully Funded Pension Rights

Retirement plan benefits that have been completely backed by financial contributions, ensuring that sufficient assets are available to meet future obligations.

Pension Expense

The total amount an employer is obligated to contribute to an employee's defined benefit pension plan in a given period.

Partially Funded Pension Rights

Pension schemes where not all of the future pension obligations are covered by current assets and contributions, implying that some liability remains unfunded.