For a Manufacturing Business, Which of the Following Would Be

question 26

Multiple Choice

For a manufacturing business, which of the following would be considered a period cost?

• A)Indirect materials
• B)Factory utilities
• C)Direct labor
• D)Sales salaries

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Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Required Return

The minimum rate of return an investor expects to achieve from an investment, considering its risk level.

Dividend

Profits shared by a corporation with its shareholders, usually through a formal distribution.

Required Rate

The minimum annual percentage return that an investment must yield to be considered a viable option, often based on risk level, inflation, and alternative investment opportunities.