Match the Costs That Follow to the Type of Product

question 90

Multiple Choice

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) .
-Wood

• A)Direct labor
• B)Direct materials
• C)Factory overhead
• D)Not a product cost

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Definitions:

Total Assets

The sum of all assets owned by a company, including cash, investments, equipment, and real estate.

Profitability

A measure of how efficiently a company or project generates profit in relation to its revenue or investments.

Times Interest Earned

A financial ratio that measures a company’s ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Interest Payments

The amount paid by a borrower to a lender over a period of time for the use of borrowed money, typically expressed as an annual percentage rate.