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:

Firm's Capital

The financial resources a company uses for its operations, including equity, debt, and retained earnings.

Coupon Rate

The interest rate paid by fixed-income securities, determined as a percentage of the principal value.

Marginal Tax Rate

The tax rate applicable to the last dollar of an individual's or entity's taxable income.

Cost of Debt

The effective rate that a company pays on its current debt, which can include loans, bonds, and any other interest-bearing liabilities.