Materials That Are Used in Support of the Production Process

question 152

Multiple Choice

Materials that are used in support of the production process but are not clearly identified with units or batches of product are called:

• A) Secondary materials.
• B) General materials.
• C) Direct materials.
• D) Indirect materials.
• E) Materials inventory.

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Definitions:

Deposits In Transit

Funds that have been received and recorded by a business but not yet credited to its bank account, typically due to timing differences in bank processing.

Checkbook Balance

The amount of money available in an account, according to the account holder's records.

Bank Service Charge

Fees charged by a bank to a customer for account maintenance, transactions, and other financial services.

NSF Check

A check that has not been honored by the bank due to insufficient funds in the account to cover the amount.