Costs Which Are Not Directly Required to Produce a Product

question 5

Multiple Choice

Costs which are not directly required to produce a product but are expensed in the income statement in the period in which they are incurred are called:

• A)Product costs
• B)Period costs
• C)Variable costs
• D)Fixed costs

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Definitions:

Purchasing Department

A division within a company responsible for acquiring goods and services needed for business operations.

Socially Responsible Image

The perception or reputation of an organization or individual as acting in ethically, environmentally, and socially beneficial ways.

Workforce Diversity

The inclusion of individuals from various backgrounds, cultures, ages, genders, and abilities in the workplace.

Analytical Skills

The ability to systematically and logically analyze information or problems in order to find solutions or make decisions.