Which of the Following Is Not a Liability

question 116

Multiple Choice

Which of the following is not a liability?

• A)Notes payable.
• B)Current portion of long-term debt.
• C)An unused line of credit.
• D)Unearned revenue.

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Definitions:

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products based on a certain activity base like labor hours or machine hours.

Traditional Costing

A costing method that allocates overhead based on a predetermined rate, often leading to less accuracy in product costing.

Direct Labor-Hours

The total number of working hours spent by employees directly involved in manufacturing goods, critical for computing production costs.

Unit Product Cost

The total cost associated with producing a single unit of product, including direct materials, direct labor, and manufacturing overhead.