Select the Appropriate Classification for Each of the Costs Incurred

question 3

Multiple Choice

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-cost of tires

• A)direct materials
• B)direct labor
• C)overhead
• D)selling expense
• E)administrative expense

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Definitions:

Organizational Levels

The hierarchy within an organization, typically ranging from upper management to lower-level employees, each with different responsibilities.

Strategic Choices

Decisions made by an organization that are foundational to its long-term goals, direction, and overall strategy.

Organization Design

The process of structuring and arranging the components of a system, company, or entity to effectively achieve its objectives and goals.

Centralization

The concentration of decision-making authority at the upper levels of an organization or system.