Match the Costs That Follow to the Type of Product

question 40

Multiple Choice

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) .
-Factory supervisor's salary

• A)Direct labor
• B)Direct materials
• C)Factory overhead
• D)Not a product cost

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Definitions:

Cost of Goods Sold

The direct costs associated with producing goods that have been sold, including materials and labor.

Standard Cost System

An accounting method that uses predetermined costs for products and services to help managers control expenses and operations.

Labor Rate Variance

The variance between the real labor expenses and the anticipated (or benchmark) cost.

Labor Efficiency Variance

The gap between the number of hours actually worked and the number of standard hours projected, multiplied by the standard wage rate.