What Is Characteristic of Committed Resources

question 16

Multiple Choice

What is characteristic of committed resources?

• A)They are supplied as needed.
• B)They are acquired from outside sources and do not require a long-term commitment.
• C)They may exceed the demand for their usage.
• D)They are free to purchase as much or as little as is needed.

---

Definitions:

Manufacturing Costs

Costs directly associated with manufacturing products, encompassing raw materials, workforce expenses, and manufacturing facility costs.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and represent a significant portion of the production cost.

Manufacturing Overhead

Manufacturing overhead includes all the indirect costs associated with the production process, such as utilities, maintenance, and salaries for managers.

Controller

A high-level financial manager responsible for overseeing a company’s accounting and financial reporting processes.