Having Negative Net Income Every Once in a While Is

question 5

True/False

Having negative net income every once in a while is not such a bad thing as long as you have planned for it.

---

Definitions:

Product Cost

The total cost associated with manufacturing a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

The raw materials that can be directly traced to the manufacturing process of a product.

Indirect

Costs or actions that are not directly traceable to a specific product, service, or activity but are necessary for the business to operate.

Direct

Expenses or costs that can be directly traced to a specific cost object, like a product, department, or project.