For a Manufacturing Business, Which of the Following Would Be

question 26

Multiple Choice

For a manufacturing business, which of the following would be considered a period cost?

• A)Indirect materials
• B)Factory utilities
• C)Direct labor
• D)Sales salaries

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Definitions:

F.O.B. Seattle

A commercial term indicating that the seller of goods is responsible for them until they are loaded on board a shipping vessel in Seattle, at which point the buyer assumes risk and responsibility.

Shipment Contract

A type of agreement in sales law where the seller is responsible for delivering goods to a carrier, after which the risk of loss passes to the buyer.

Entrusted

Given over to another's care or protection, often relating to property or duties.

Merchant

An individual or company engaged in the trade of goods, services, or commodities for profit.