Which One of These Is an Investment? the Purchase of

question 248

Multiple Choice

Which one of these is an investment? The purchase of

• A)treasury bond
• B)corporate stock
• C)a new computer system
• D)a five-year-old building

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Definitions:

Materials Used in Production

The raw materials and components that are consumed in the manufacturing process to produce finished goods.

Perpetual Inventory Records

This is an inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Direct Materials

Raw materials that are traceable to the manufacturing of a product and are an integral part of the finished product.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimated costs and activity levels.