Which One of the Costs Below Is NOT a Production

question 77

Multiple Choice

Which one of the costs below is NOT a production cost?

• A)The wages paid to workers
• B)The raw materials for manufacturing products
• C)The dividends paid to shareholders
• D)The shipping costs that get the product to the customer

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Definitions:

Direct Labor Hours

Direct Labor Hours are the total hours worked by employees directly involved in the production of goods or services.

Budgeted Costs

Anticipated expenses for a specific period of time, used for planning and control purposes.

Cost Centers

Parts of an organization where costs can be traced, but direct revenues are not generated, used for budgeting and cost management purposes.

Performance Report

A document or record that outlines the performance of a specific activity or function within a set period, usually compared against set goals or standards.