Which of the Following Statements About How a Manufacturer Categorizes

question 52

Multiple Choice

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

• A)The manufacturer of a laser printer would categorize the cost of shipping that printer as a specific expense
• B)A sales promotion display for selling vinyl siding would be a general expense if the territory were the object of measurement
• C)The salary of the product line manager would be an example of a direct cost if the territory were the object of measurement
• D)The travel expenses for a pharmaceutical salesperson who sells multiple products would be an example of a direct cost
• E)Advertising is a specific expense

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another, a common practice in contracts and financial transactions.

Delegation

The process of assigning responsibility and authority to another person to carry out specific activities.

Substantial Performance

A legal concept indicating that a party has completed enough of its contractual obligations to warrant payment or another form of compensation, even if minor details remain unfulfilled.

Agency

A relationship between two parties, where one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.