Select the Appropriate Classification for Each of the Costs Incurred

question 215

Multiple Choice

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles.
-Cost of carbon frames used in the production process

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

---

Definitions:

Periodic Income

This refers to the income received or earned regularly over a specific period, such as monthly or quarterly, typically associated with investments or employment.

Income Reporting

The process of declaring revenue earned by an individual or entity within a certain time frame, often for tax purposes.

Retained Earnings Statement

A financial document that shows how a company's retained earnings have changed over a reporting period due to net income and dividend payouts.

Statement of Cash Flows

A financial report that shows the inflows and outflows of cash in a business over a specific period.