Which of the Following Is Not Considered an Ordinary Expense

question 61

Multiple Choice

Which of the following is not considered an ordinary expense for a rental activity?

• A)Property taxes
• B)Advertising
• C)Insurance
• D)All of these are deductible as ordinary expense

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.

Raw Materials

The basic, unprocessed materials used in manufacturing to produce finished goods.

Work in Process

Work in process (WIP) refers to the materials and labor that are in the production process but have not yet been completed or transformed into finished goods.

Manufacturing Product

The end result of the manufacturing process, which is the production of goods in a factory.