Which of the Following Employees Would Not Be Classified as Indirect

question 73

Multiple Choice

Which of the following employees would not be classified as indirect labor?

• A) Plant Custodian.
• B) Salesperson.
• C) Assembler of wooden furniture.
• D) Plant security guard.
• E) Salesperson and assembler of wooden furniture.

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Definitions:

Net Income Manipulation

The practice of using accounting tricks to make a company's financial performance appear better than it actually is.

Average Cost Formula

A method used in accounting and inventory management to determine the cost of goods sold and the ending inventory value by calculating the average cost of all similar items.

FIFO

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired.

Gross Profit

The difference between the revenue generated from selling goods or services and the cost of goods sold, excluding indirect expenses like administration costs.