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:

Avoid Paying Dividends

Strategies employed by companies to retain earnings instead of distributing them to shareholders as dividends, often to reinvest in the business or improve balance sheet health.

Poison Pills

A defensive strategy used by companies to prevent or discourage unwanted takeover bids by making the company less attractive to the potential acquirer.

White Knights

Friendly investors or companies that rescue a target company from a hostile takeover by purchasing a significant stake in the company.

Repurchasing Stock

The process whereby a corporation repurchases its own shares from the market, thereby decreasing the total number of shares available.