The Three Categories of Manufacturing Costs Comprising the Cost of Work

question 78

Multiple Choice

The three categories of manufacturing costs comprising the cost of work in process are direct labor, direct materials, and:

• A) office expenses
• B) direct expenses
• C) sales salaries expense
• D) factory overhead

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Definitions:

Fractional Reserve Banking

A banking system where banks hold a fraction of deposits as reserves and use the rest for lending purposes.

Total Deposits

The sum of all money deposited in a bank by its customers.

Total Reserves

The sum of a bank's deposits held in reserve at a central bank plus its cash on hand, used to satisfy demand for withdrawals or to meet regulatory requirements.

Interstate Banking

The practice or system allowing banks to operate branches and offer services in more than one state, previously restricted in the U.S.