Which of the Following Is Not a Name for Indirect

question 43

Multiple Choice

Which of the following is not a name for indirect resources?

• A) Overhead costs
• B) Burden
• C) Direct costs
• D) Common costs

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Definitions:

Predetermined Overhead Allocation Rate

A calculated rate used to apply manufacturing overhead costs to specific jobs or production units based on estimated costs and activities.

Direct Labor Cost

The expense incurred by companies for wages, benefits, and other costs directly associated with the employment of workers who physically produce a product or service.

Equivalent Finished Units

A calculation in cost accounting that converts partially completed goods into a number of complete units for inventory costing purposes.

Direct Labor

The cost of wages for workers directly involved in the manufacturing or production of goods.