If the Cost of Employee Wages Is Not a Significant

question 135

True/False

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

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Definitions:

Payments

Amounts of money transferred from one party to another as fulfillment of financial or contractual obligations.

Compounded Annually

Interest on an investment that is calculated once a year on the principle plus any previously earned interest.

Individual Retirement Account

A retirement savings plan that offers tax advantages for individuals to allocate funds for their retirement.

Invest

To allocate money in the expectation of some benefit in the future.