The Costs That Follow All Have Applicability for a Manufacturing

question 22

Multiple Choice

The costs that follow all have applicability for a manufacturing enterprise. Which of the choices listed correctly denotes the costs' applicability for a service provider? $\begin{array}{lll}\text { Period cost } & \text { Uncontrollable cost } & \text { Opportunity cost }\\\hline\text { A. Applicable } & \text { Applicable } & \text { Not applicable } \\\text { B. Applicable } & \text { Not applicable } & \text { Applicable } \\\text { C. Applicable } & \text { Applicable } & \text { Applicable } \\\text { D. Not applicable } & \text { Applicable } & \text { Applicable } \\\text { E. Not applicable } & \text { Applicable } & \text { Not applicable }\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

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Definitions:

Accounts Receivable

Financial obligations of customers to a company for products or services already delivered but not settled.

Depreciation Expense

Depreciation expense is the allocated amount of the cost of a tangible asset over its useful life, recognized in accounting to account for the decrease in the asset's value over time.

Net Income

The company's remaining earnings once all costs, taxes, and expenses are deducted from its total revenues.

Direct Method

A way of preparing the cash flow statement where actual cash receipts and payments are reported, rather than adjusting net income.