Select the Appropriate Classification for Each of the Costs Incurred

question 53

Multiple Choice

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles.
-Depreciation of vehicles used by sales personnel

• A)Direct materials
• B)Direct labour
• C)Overhead
• D)Selling expense
• E)Administrative expense

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Definitions:

Quality Check Department

A dedicated section within an organization focused on ensuring products or services meet quality standards through systematic inspection and testing processes.

Solver

A computational tool used in optimization that finds the best solution to a problem by varying different variables within certain constraints.

Monthly Profit

The net income earned by a business or individual during a one-month period, calculated by subtracting total expenses from total revenue.

Inequality

A mathematical or social science statement indicating that two values or conditions are not equal in terms of size, magnitude, or importance.