Which of the Following Items Is Not Classified as Indirect

question 164

Multiple Choice

Which of the following items is not classified as indirect materials for a furniture manufacturing company?

• A)Sanded and finished wood used to make bed frames
• B)Decorative brads used on the arms of chairs
• C)Glue used to strengthen joints
• D)paint used to touch up the final product

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Definitions:

Profit Incentives

Motivations for businesses and individuals to increase their earnings and achieve financial gains, often driving economic activities and innovation.

Market System

(1) An economic system in which individuals own most economic resources and in which markets and prices serve as the dominant coordinating mechanism used to allocate those resources; capitalism. Compare with command system. (2) All the product and resource markets of a market economy and the relationships among them.

Retained Earnings

Profits that a company keeps after dividends are paid out to shareholders, often used for reinvestment in the business or to pay off debt.

Funding of R&D

The financial investment allocated towards research and development activities in order to innovate, enhance product quality, or create new products.