Which of the Following Is True

question 73

Multiple Choice

Which of the following is true?

• A)Factory overhead consists of manufacturing costs other than direct materials and direct labour.
• B)Net realizable value is the expected sales price plus selling costs.
• C)FIFO Reserve is a contra sales account for the excess of FIFO over weighted-average inventory.
• D)Purchases discounts increase sales revenue to arrive at net sales.

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Definitions:

Buying

The action of acquiring ownership in a security or other financial asset in the hope of generating a gain.

Selling

The process of parting with goods or services in exchange for money or other compensation.

Hedge Strategy

Investment strategies intended to reduce potential losses that may be incurred from adverse price movements in assets.

Short Oil Futures

A speculative strategy involving the sale of oil futures contracts in anticipation of oil prices falling, intending to buy back at a lower price.