Which of the Following Would Be Considered a Direct Labor

question 169

Multiple Choice

Which of the following would be considered a direct labor cost for a manufacturing business?

• A)wages of the assembly line staff
• B)wages of the factory janitors
• C)wages of the factory manager
• D)salaries of the internal auditors

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Definitions:

Expenses

Outflows or other uses of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Assets

Resources owned or controlled by a business, considered to have economic value and expected to benefit future operations.

Prepaid Rent Expense

Prepaid rent expense is an advance payment for rent that is recorded as an asset on the balance sheet until it is used or consumed in future periods.

Liability

An obligation that a corporation or individual has to another entity, typically financial in nature, such as loans or accounts payable.