Costs Such as Salary of Supervisors and Other Support Personnel

question 109

Multiple Choice

Costs such as salary of supervisors and other support personnel, which are accounted for as overhead costs, are called

• A) direct labor.
• B) sales assistance.
• C) indirect labor.
• D) variable labor.

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Definitions:

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.

LIFO

An inventory valuation method, "Last In, First Out," where the most recently produced or acquired items are recorded as sold first.

Current Cost Profits

The earnings achieved by a company based on the replacement costs of the assets used in its operations rather than historical cost accounting.

Operating Profits

Profits from a company's core business operations, excluding deductions of taxes and interest.