Which of the Following Terms Apply to Materials and Supplies

question 56

Multiple Choice

Which of the following terms apply to materials and supplies that can be traced conveniently to specific products?

• A)Indirect materials
• B)Indirect manufacturing costs
• C)Direct costs
• D)Manufacturing overhead

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash receipts and payments are reported, rather than adjusting net income.

Net Cash Flow

The difference between a company's cash inflows and outflows in a given period.

Operating Activities

Activities that relate directly to the primary revenue-producing operations of an organization, such as sales and service delivery.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.