Indirect Materials and Indirect Labor Are Components of Manufacturing Overhead

question 115

True/False

Indirect materials and indirect labor are components of manufacturing overhead.

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Definitions:

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting year; stands for Last-In, First-Out.

Ending Inventory

The total value of a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold, at the end of an accounting period.

Hammers

Hammers are hand tools with a weighted head fixed to a long handle, used for delivering an impact to an object.

FIFO Method

"First In, First Out" inventory management system where the goods purchased or produced first are sold or used first.