Which of the Following Is an Example of Direct Labor

question 119

Multiple Choice

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

• A) wages of assembly line personnel
• B) salary of vice president of production
• C) wages of factory security guard
• D) salary of production manager

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Definitions:

Owner's Capital Account

An equity account on the balance sheet representing the total amount of investment made by the owner(s) in the company, including profits retained in the business.

Balance Sheet Accounts

These are the financial accounts that appear on the balance sheet, including assets, liabilities, and equity accounts, representing the financial position of a company at a specific point in time.

Permanent Accounts

Financial accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Real Accounts

Accounts that represent assets, liabilities, and equity, which are not closed at the end of the accounting period and carry over their balances.