In a Manufacturing Environment, Direct Labor Costs Initially Flow

question 48

Multiple Choice

In a manufacturing environment, direct labor costs initially flow

• A) into the Materials Inventory account.
• B) directly to Cost of Goods Sold.
• C) into the Work in Process Inventory account.
• D) into the Finished Goods Inventory account.

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Definitions:

Gold Exchange Standard

A monetary system where countries hold reserves in a currency that is convertible into gold but do not exchange currency for gold themselves; instead, the currency can be exchanged for another currency that is convertible into gold at a fixed rate.

Current Account

A component of a country's balance of payments that measures the trade balance, net primary income, and net secondary income with foreign entities.

Deficit

The amount by which expenses or costs exceed income or revenues, commonly associated with governmental budgeting.

Current Account

A component of a country's balance of payments that measures the trade in goods and services, net income from abroad, and net current transfers.