A Chair Manufacturer Makes Custom Chairs Using Hand Tools,wood,glue,and Varnish

question 8

Multiple Choice

A chair manufacturer makes custom chairs using hand tools,wood,glue,and varnish.Which of the following statements is true?

• A) The costs of wood and glue would be treated as direct costs.
• B) Wood, glue, and varnish would all be direct materials.
• C) Wood would be accounted for as a direct cost, and glue and varnish as indirect costs.
• D) The concepts of direct and indirect costs are not applicable here.

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Definitions:

Trading Rights

Trading rights pertain to permissions or entitlements granted to individuals, companies, or countries to engage in trade within particular markets or regions, often subject to international agreements and treaties.

Iroquois Nation

A historically powerful confederation of six Native American nations, primarily located in what is now New York and parts of Canada.

Colonists

Individuals who settle in a new land or colony, often establishing a permanent or semi-permanent residence.

Mohawk Land

Refers to territories traditionally inhabited by the Mohawk people, a member of the Iroquois Confederacy, primarily in what is now upstate New York and parts of Canada.