For a Manufacturing Business, Which of the Following Would Be

question 58

Multiple Choice

For a manufacturing business, which of the following would be considered an inventoriable product cost?

• A) Salaries of salesmen
• B) Salary of the CEO
• C) Salaries of the accounting staff
• D) Salary of the factory security guard

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Definitions:

Turnover

In a business context, this term can refer to the rate at which inventory is sold and replaced or the rate at which employees leave and are replaced within a company.

Return on Investment

A financial metric used to measure the profitability or efficiency of an investment, calculated by dividing net profit by the initial cost of the investment.

Minimum Required Return

This refers to the smallest expected or necessary rate of return on an investment to make it worthwhile.

Transfer Price

The amount levied on goods or services traded across sections or sister companies within the same organization.