Days' Payable Is Measured

question 62

Multiple Choice

Days' payable is measured

• A) in days.
• B) as a percentage.
• C) in dollars.
• D) in times.

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Definitions:

Direct Labor

Labor costs that are directly attributed to the work on specific goods or services, easily traced to individual units of production.

Manufacturing Overhead

These are indirect costs associated with manufacturing, not directly attributable to a specific product, such as factory rent, utilities, and maintenance.

Direct Materials

The raw materials used in the manufacturing process of a product that are directly incorporated into the final product.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the production process, awaiting use in manufacturing.