Classifying a Cost as ________ Is Easier If a Company's

question 95

Multiple Choice

Classifying a cost as ________ is easier if a company's facility (or some part of it) is used exclusively for a specific cost object,such as a specific product or a particular customer.

• A)direct
• B)indirect
• C)allocated
• D)accumulated

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Definitions:

Labor-intensive Industries

Sectors or businesses that require a large amount of labor to produce goods or services, as opposed to being heavily automated or equipment-oriented.

Availability

The extent to which a product or service is obtainable and ready for use by customers.

Cost of Labor

The total amount spent by businesses on employee wages, benefits, and payroll taxes.

Supply Chain Operation

The execution and management of activities involved in sourcing, procurement, conversion, and logistics management to produce and deliver goods or services.