An Example of Expenditure Classification by Character Would Be

question 41

Multiple Choice

An example of expenditure classification by character would be:

• A) Capital outlay.
• B) Public safety.
• C) Police department.
• D) Salaries.

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials and labor directly used to create the good.

Standard Cost Variances

Differences between the expected (standard) costs of a product or service and the actual costs incurred.

Standard Cost System

A cost accounting system that uses cost standards for prices and quantities to control costs.

Cost of Goods Sold

The expenses directly related to the manufacturing of products a company sells, such as raw materials and workforce costs.