Which of the Following Is an Example of Direct Labor

question 119

Multiple Choice

Which of the following is an example of direct labor cost in a factory?

• A) wages of assembly line personnel
• B) salary of vice president of production
• C) wages of factory security guard
• D) salary of production manager

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Definitions:

Accounts Receivable

Accounts Receivable represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Sales Revenue

The income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Accounts Payable

Liabilities to creditors, representing amounts the company owes for goods and services it has received but not yet paid for.

Note Receivable

A financial asset representing a written promise to receive a specific amount of money, plus interest if applicable, by a certain date.