On-Costs on Direct Labour Are Classified As

question 79

Multiple Choice

On-costs on direct labour are classified as:

• A) direct labour.
• B) indirect labour.
• C) manufacturing overhead.
• D) either direct labour or indirect labour depending on the decision made by the firm.

---

Definitions:

Amortization

Amortization is the process of gradually reducing the cost of an intangible asset over its useful life, or systematically repaying a debt over a period of time.

Intra-Entity Bonds

Intra-entity bonds refer to bonds issued between entities within the same corporate group, used for internal financing purposes.

Straight-Line Method

The straight-line method is a way of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, usually through ownership of 20-50% of voting stock.