What Item Is NOT a Line Item on the Purchases

question 128

Multiple Choice

What item is NOT a line item on the purchases and cost of goods sold budget?

• A) purchases of inventory
• B) sales
• C) beginning inventory
• D) desired ending inventory

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Definitions:

Manufacturing Overhead

Indirect costs related to manufacturing, including utilities, maintenance, and salaries of support staff.

Production Supervisors

Individuals responsible for overseeing the production process and ensuring that manufacturing goals are met.

Direct Cost

Expenses that can be directly traced to a product, service, or department, such as raw materials or labor.

Cost Object

Any item for which cost is measured and assigned, including products, services, projects, departments, or activities.