The Cost of a Manufactured Product Generally Consists of Which

question 129

Multiple Choice

The cost of a manufactured product generally consists of which of the following costs?

• A) Direct materials cost and factory overhead cost
• B) Direct labor cost and factory overhead cost
• C) Direct labor cost, direct materials cost, and factory overhead cost
• D) Direct materials cost and direct labor cost

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Definitions:

Inherent Defect

A flaw or imperfection in a product that exists due to its nature or design, not because of external factors.

Seller's Lien

A legal right or interest that a seller holds in the sold goods until the full purchase price is paid by the buyer, often used as a form of security.

Sale of Goods Act

A law regulating the sale of goods, providing rights, duties, and obligations of both buyers and sellers, ensuring fairness in transactions.

Purchaser

An individual or entity that acquires goods or services in exchange for money.