Which One of the Following Items Is Typically an Example

question 134

Multiple Choice

Which one of the following items is typically an example of an indirect cost of a cost object?

• A)courier charges for shipment delivery
• B)manufacturing plant electricity
• C)direct manufacturing labour
• D)wood used for furniture manufacture
• E)refundable sales tax on direct materials

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Definitions:

Merchandising Income Statement

A financial statement detailing the gross profit, expenses, and net profit or loss of a retail or wholesale business.

Administrative Expenses

Overheads and general expenses related to the day-to-day management and operation of a business, excluding production and direct costs.

Operating Income

The profit realized from a business's core operations, excluding revenue from investments and costs such as interest expenses and taxes.

Cost Of Goods Sold

The specific costs tied to the production of goods sold by a company, which include the cost of materials and labor.