Which of the Following Properly Describes the Accounting for Indirect

question 44

Multiple Choice

Which of the following properly describes the accounting for indirect labour costs?

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

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Definitions:

Average Daily Cost

The average cost incurred by a business or an operation calculated on a daily basis.

Sales In Inventory

This term seems incorrect or incomplete. The correct term is likely "Inventory," which refers to the goods and materials a business holds for the purpose of resale.

FIFO

First In, First Out (FIFO) is an inventory valuation method where the costs of the oldest items are the first to be expensed, used to calculate cost of goods sold.

Cost Of Goods Sold

The specific costs involved in producing goods for sale by a company, covering materials and labor.