Under Time and Material Pricing,what Is(are)included in the Time Component

question 23

Multiple Choice

Under time and material pricing,what is(are) included in the time component?

• A) Only the direct costs of the employee, including salary and fringe benefits.
• B) A profit element.
• C) A loading charge.
• D) A charge for ordering and handling inventory items.

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Definitions:

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the loss in value over time.

Master Budget

An inclusive financial planning document that combines all of a company's individual budgets and plans for a specific period.

Credit Sales

Sales made by a business where payment is delayed as per agreed terms between the seller and the buyer.

Direct Labor

The wages and benefits paid to workers who are directly involved in the production of goods.