To Determine the Cost of a Manufactured Product,a Normal Costing

question 120

Multiple Choice

To determine the cost of a manufactured product,a normal costing system uses ________.

• A)actual direct material,actual direct labor and actual overhead
• B)applied direct material,applied direct labor and applied overhead
• C)applied direct material,applied direct labor and actual overhead
• D)actual direct materials,actual direct labor and normal applied overhead

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Definitions:

Out Of The Money

Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.

In The Money

Describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, without regard to market value.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specified time frame.