Which of the Following Statements About How a Manufacturer Categorizes

question 30

Multiple Choice

Which of the following statements about how a manufacturer categorizes its costs and expenses is True?

• A)A general expense is much like a direct cost in that it cannot be identified directly with a specific object of profit measurement,such as a territory,salesperson or product
• B)All costs are categorized as either direct or indirect-but never as both
• C)A salesperson's salary would be a direct cost for his or her territory,but an indirect cost for the product sold
• D)Advertising is a direct cost
• E)A specific expense is much like a direct in that it can generally be identified with a wide range of products and functions

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Definitions:

Cash

Money in the form of coins or banknotes, especially that used to pay for goods or services.

Special Kind

A unique or particular type or category that stands out from others.

Draft

An instrument validating an order by a drawer to a drawee to pay a payee.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.