Which of the Following Would Be Included as Indirect Manufacturing

question 129

Multiple Choice

Which of the following would be included as indirect manufacturing costs for a manufacturing business?

• A)sales commissions
• B)fuel and maintenance for delivery vehicles
• C)wages of the assembly line workers
• D)wages of the factory manager

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Definitions:

Floating-rate Debt

Debt instruments that have variable interest rates, which can change over the duration of the instrument based on market conditions.

LIBOR

The London Interbank Offered Rate, an interest rate average calculated from estimates submitted by leading banks in London and used as a global benchmark for short-term interest rates.

Interest Expense

The expenses an organization faces for using borrowed capital over a specified duration.

Effective Interest Rate

The actual rate of interest earned or paid on an investment or loan over a given period, accounting for the effect of compounding.