Examlex
Which of the following funds should use the accrual basis of accounting?
Direct Materials
Raw materials that are directly traceable to the manufacturing of products and significantly contribute to the product's cost.
Direct Labor
Direct labor costs are the wages and related expenses paid to employees who directly work on the production of goods or services.
Product Costs
Direct costs attributable to the production of goods, including direct labor, materials, and manufacturing overhead, capitalized as inventory and then expensed as sold.
Total Period Costs
All expenses incurred by a business that are not directly tied to the production of goods or services within a specific period.
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