Which of the Following Would Be Included in the Cost

question 83

Multiple Choice

Which of the following would be included in the cost of a product manufactured according to absorption costing?

• A)advertising expense
• B)sales salaries
• C)depreciation expense on factory building
• D)office supplies costs

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Definitions:

Adjusting Entries

Accounting records created at the close of an accounting period to assign revenues and expenses to the period they truly belong to.

Deposits In Transit

Funds that have been recorded in a company's books but not yet reflected in its bank balance due to processing time.

Cash Disbursements

The act of paying out cash for various purposes, including expenses, investments, and dividends.

Outstanding Checks

Checks that have been written and recorded in the payer's account but not yet cashed or processed by the recipient.