Which of the Following Correctly Describes the Accounting for Administrative

question 137

Multiple Choice

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

• A) Administrative expenses are product costs and are expensed as incurred.
• B) Administrative expenses are period costs and are expensed as incurred.
• C) Administrative expenses are product costs and are expensed when the manufactured product is sold.
• D) Administrative expenses are period costs and are expensed when the manufactured product is sold.

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Definitions:

Messages

Discrete units of communication intended to convey information, emotions, or intentions.

Decoded

The process of interpreting or giving meaning to a message, ensuring understanding between the sender and the receiver.

Touching Others

The act of making physical contact with someone else, typically to convey a message, emotion, or support.

Organizational Rank

The hierarchy or level of authority within an organization, determining an individual's responsibilities, decision-making power, and status.