Which One of the Following Items Is Typically an Example

question 134

Multiple Choice

Which one of the following items is typically an example of an indirect cost of a cost object?

• A)courier charges for shipment delivery
• B)manufacturing plant electricity
• C)direct manufacturing labour
• D)wood used for furniture manufacture
• E)refundable sales tax on direct materials

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Definitions:

Increase

An upward movement or growth in value, amount, or any measurable attribute.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's resources.

Revenues

The total income generated by a company from its business activities, typically from the sale of goods or services before any expenses are subtracted.

Expenses

Outflows of resources or incurrences of liabilities that a company undergoes as part of its operations to generate revenue.