A Company Manufactures Furniture

question 26

Multiple Choice

A company manufactures furniture.Which of the following costs would be included in the production of a piece of furniture as a direct cost,and used to calculate the cost per unit,when making tables?
(i) The wood used to make the table tops
(ii) The varnish and paint used
(iii) The wages of the workers on the assembly line,paid per table manufactured.
(iv) The salary of the supervisor of the assembly line
(v) The salary of the accountant producing the annual accounts for the company.

• A) (i) and (ii) only as these are used in the product
• B) (i) - (iv) as these are part of production. The accountant is not
• C) (i) and (iii) only. The others are indirect costs
• D) All of them. The company cannot exist without all of these costs and more

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Definitions:

U.S. Marines

A branch of the United States Armed Forces responsible for providing power projection from the sea, using the mobility of the U.S. Navy to deliver combined-arms task forces rapidly.

Occupation

A person's job or profession, or the control and settlement of an area by a foreign power.

Black Americans

Refers to American citizens or residents of African descent, often with a history tied to slavery and civil rights struggles in the United States.

NAACP

The National Association for the Advancement of Colored People, a civil rights organization founded in 1909 to fight for justice for African Americans.