Direct Manufacturing ________ Costs Include the Compensation of All Manufacturing

question 155

Multiple Choice

Direct manufacturing ________ costs include the compensation of all manufacturing labour that can be traced to the cost object (work in process and then finished goods) in an economically feasible way.

• A)material
• B)labour
• C)overhead
• D)projected

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Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business.

Net Present Value

A financial metric that calculates the present value of net cash flows from an investment, considering the time value of money.

Assumptions

Premises or statements taken as true without proof for the purpose of argument or investigation in analytical or operational processes.

Bottleneck Operation

A stage in the production process that reduces the overall capacity because its work rate is slower than that of other stages.