Which of the Following Is Not a Product Cost

question 156

Multiple Choice

Which of the following is not a product cost?

• A)Indirect materials costs
• B)Packaging costs
• C)Direct labor costs
• D)Overhead costs

Understand the calculation of returns, specifically return on total assets and return on equity, and their relevance to overall financial performance.

Calculate working capital and understand its significance.

Analyze the effect of various transactions on financial ratios such as the current ratio, acid-test ratio, and debt-to-equity ratio.

Apply formulas to determine current ratio and acid-test ratio.

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Definitions:

Square Footage

The measurement of area in square feet, often used to determine the size of a room, building, or piece of land.

Indirect Expense

Costs that are not directly linked to a specific product, service, or cost object and often relate to the general operation of a business.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue, calculated by dividing sales by the average total assets.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company's sales.