Tangible Benefits Are Those That Can Be Reasonably Quantified, Such

question 51

True/False

Tangible benefits are those that can be reasonably quantified, such as reduced equipment costs and increased revenues.

---

Definitions:

Period Costs

Expenses directly tied to non-manufacturing activities such as selling, administration, and general business operations, recognized in the income statement when incurred.

General Costs

General costs are indirect expenses related to the overall operations of a company that cannot be directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.