Which of the Following Is an Example of a Direct

question 26

Multiple Choice

Which of the following is an example of a direct materials cost?

• A)wood used to make furniture
• B)nails used to construct furniture
• C)glue used to build furniture
• D)screws used to manufacture furniture

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Definitions:

GST and PST

Taxes applied to the sale of goods and services; GST is a federal tax in Canada, while PST is a provincial sales tax.

Sold

The act of exchanging a product or service for money or other consideration.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number.

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.