Which of the Following Costs Is the Most Likely to Beallocated

question 52

Multiple Choice

Which of the following costs is the most likely to beallocated to a product in a traditional job costing environment?

• A) Direct materials
• B) Direct labor
• C) Manufacturing overhead
• D) Selling and administrative

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses, and the resulting profit or loss, over a specific period.

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to arrive at operating cash flow.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Operating Activities

The day-to-day actions that involve the production, sales, and delivery of a company's product or service, as reflected in its income statement.