If Alexander Doesn't Like Changing the Oil in His Car

question 118

Multiple Choice

If Alexander doesn't like changing the oil in his car and pays his father to do it for him,he has provided his father with a(n) ________ incentive.

• A) direct
• B) indirect
• C) neutral
• D) complementary
• E) unintended

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Definitions:

Work in Process Inventory

The account that tracks the costs associated with partially completed goods that are still in the process of being manufactured.

Unadjusted Cost of Goods Sold

Unadjusted Cost of Goods Sold (COGS) is the initial calculation of all costs directly associated with the production of goods before any adjustments for inventory changes or other factors.

Journal Entry

A record in the accounting journal that represents a business transaction and its effect on the accounts.

Manufacturing Overhead

All indirect costs associated with the production process, from maintenance expenses of the production facility to the supplies needed for operation.