Which of the Following Correctly Describes the Accounting for Administrative

question 137

Multiple Choice

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

• A) Administrative expenses are product costs and are expensed as incurred.
• B) Administrative expenses are period costs and are expensed as incurred.
• C) Administrative expenses are product costs and are expensed when the manufactured product is sold.
• D) Administrative expenses are period costs and are expensed when the manufactured product is sold.

---

Definitions:

Tendency to Conform

reflects the inclination of individuals to adopt the behaviors, attitudes, or values of their peers or society as a whole, often to gain acceptance or avoid social sanctions.

Compliance

The act of conforming to, following, or agreeing to a request, rule, or instruction typically from an authority figure or social norm.

Obedience

The act of following orders or directives from authority figures, often without question or resistance.

Darley and Latané

Psychologists known for research on bystander intervention and the diffusion of responsibility in emergency situations.