Which of the Following Is an Example of a Direct

question 171

Multiple Choice

Which of the following is an example of a direct labor cost standard?

• A) $40 per direct labor hour
• B) 50 square feet per unit
• C) $0.95 per square foot
• D) 0.5 direct labor hours per unit

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Definitions:

Fair Value Method

An accounting technique that measures and reports assets and liabilities on the basis of estimates of their current market value rather than historical cost.

Bond Investments

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Investment Amount

The total sum of money allocated to a particular investment or portfolio.

Bonds

A fixed income investment in which an investor loans money to an entity (corporate or sovereign) which borrows the funds for a definite period at a variable or fixed interest rate.