In the Cost Classification System Used by Manufacturing Firms,total Manufacturing

question 135

Multiple Choice

In the cost classification system used by manufacturing firms,total manufacturing costs would include all of the following EXCEPT:

• A)prime costs and manufacturing overhead costs.
• B)direct materials costs,direct manufacturing labour costs,and manufacturing overhead costs.
• C)direct materials costs and conversion costs.
• D)indirect materials costs,indirect manufacturing labour costs,and manufacturing overhead costs.

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment compared to its cost.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate revenue, such as machinery, buildings, and equipment.

Net Operating Income

The profit a company generates from its operations, before taxes and interest, calculated as gross income minus operating expenses.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.