The Cost of the Direct Labor Will Be Treated as an Expense

question 26

Multiple Choice

The cost of the direct labor will be treated as an expense on the income statement when the resulting:

• A)payroll costs are paid.
• B)payroll costs are incurred.
• C)products are completed.
• D)products are solD.This solution supports the matching principle.

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Smooth Muscle Fibers

Muscle tissue that is involuntary, non-striated, and found in the walls of internal organs and blood vessels.

Cardiac Muscle Fibers

Specialized muscle fibers found in the heart that enable its contraction and beating.

Involuntary Control

The regulation of bodily functions not under conscious control, such as heartbeat and digestion.