Which of the Following Costs Would Be Included as Part

question 50

Multiple Choice

Which of the following costs would be included as part of direct materials in the production of an automobile?

• A)glue for a sticker applied to the automobile
• B)steel
• C)gasoline used to fuel machines in production
• D)none of these

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Definitions:

Stockholder Investments

Funds or assets invested by shareholders into a corporation, typically through the purchase of stock, representing ownership interest.

Beginning Equity

The value of an owner's interest in a company at the start of the accounting period.

Ending Equity

The value of an owner's interest in a company after all liabilities have been subtracted from the company’s assets at the end of an accounting period.

Accounts

Financial records that track the transactions related to a specific asset, liability, equity, revenue, or expense. These are fundamental components of the accounting system used to compile financial statements.