The Three Basic Elements of Manufacturing Cost Are Direct Materials

question 50

Multiple Choice

The three basic elements of manufacturing cost are direct materials, direct labor, and:

• A) cost of goods manufactured.
• B) cost of goods sold.
• C) work in process.
• D) manufacturing overhead.

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Definitions:

Bondholder

An investor or entity that legally owns a bond issued by a borrower, entitling them to receive fixed interest payments and the principal amount at maturity.

Discount

A reduction from the usual cost of something, often used to encourage sales or prompt early payment of invoices.

Face Value

The nominal value or dollar value printed on a bond or stock certificate.

Bonds

Debt securities issued by entities such as corporations or governments to raise funds, which obligate the issuer to pay back the principal amount with interest by a specified date.