Indirect Labor Is A(n)

question 171

Multiple Choice

Indirect labor is a(n) :

• A)Prime cost.
• B)Conversion cost.
• C)Period cost.
• D)Opportunity cost.

---

Definitions:

Bad Debt Expense

An accounting expense recognized when a company can no longer recover a debt that it has issued.

Bad Debt Expense

Represents the amount of receivables a company estimates it will not collect.

Allowance Method

An accounting technique used to estimate and record bad debts expense by anticipating uncollectible accounts.

Allowance Method

An accounting technique used to estimate and record uncollectible accounts receivable, reducing the net value of accounts receivable to an amount expected to be collected.