Although Direct Labor and Raw Materials Costs Are Treated as Manufacturing

question 104

True/False

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

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Definitions:

Anticipatory Excuses

The justifications or reasons provided in advance to mitigate potential future blame or negative judgements.

Subsequent Performances

Refers to the performances or actions that follow an initial event or activity, often analysed to gauge improvement, decline, or consistency over time.

Overjustification Effect

The reduction in intrinsic motivation to perform a task due to the introduction of extrinsic rewards for performing it.

Contingent Reward

A motivational strategy where rewards are given based on the achievement of specific criteria or the performance of certain actions.