The Computation for Cost of Goods Manufactured on the Income

question 113

Multiple Choice

The computation for Cost of Goods Manufactured on the income statement is ________.(Assume there are no work-in-process inventories.)

• A)direct materials used plus direct production costs
• B)direct materials used plus direct labor plus indirect production costs
• C)direct materials used plus direct labor
• D)direct materials used plus direct labor plus direct production costs

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Definitions:

Discouraged Workers

Individuals not actively seeking employment due to believing no jobs are available for them, not considered in the count of the unemployed.

CPI

By analyzing the weighted average prices of a diverse assortment of consumer products and services, including transportation, medical care, and food, the Consumer Price Index calculates the overall average price.

Base Year

A specific year against which economic growth is measured, serving as a comparison point for other years.

CPI

Measuring the average price for a set basket of goods and services consumed by people, from food to healthcare and transportation, the Consumer Price Index employs their weighted average prices for assessment.