A Manufacturing Firm Has Manufacturing Costs Which Become Product Costs

question 93

Multiple Choice

A manufacturing firm has manufacturing costs which become product costs. These manufacturing costs do not include:

• A)direct material costs (or raw material costs)
• B)direct labor costs
• C)manufacturing overhead costs (sometimes called indirect manufacturing costs)
• D)expenditures for administrative staff
• E)expenditures for supervisors' salaries, factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment

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Definitions:

Dividends Received

Income received by shareholders when a company distributes a portion of its profits to its stockholders.

Cash Dividends

Payments made by a company out of its profits to its shareholders, distributing cash among them.

$70 Commission

A specific fee or payment of $70 made to an agent or employee for facilitating a sale or service.

Outstanding Shares

Stocks that a corporation has distributed and are currently owned by investors, encompassing both members of the general public and internal stakeholders of the company.