A Plant Manufactures Several Different Products

question 48

Multiple Choice

A plant manufactures several different products.The wages of the plant supervisor can be classified as a(n) ________.

• A) direct cost
• B) inventoriable cost
• C) variable cost
• D) period cost

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Prepaid Expenses

The payments the company has already made for services not yet received.

Compensation Policy

The level of compensation and benefits for each type of position in the business.

Obligations

Duties or responsibilities that an individual or organization is required to fulfill, often by law, social norms, or personal commitment.