Direct manufacturing costs include: A. B. C. OD Depreciation, Raw Materials and Maintenance of manufacturing equipment. Premium portion of overtime wages, raw materials and rent on the manufacturing building. Direct Labor, Variable Manufacturing overhead and Raw Materials. D. None of the above.
Direct manufacturing costs include: A. B. C. OD Depreciation, Raw Materials and Maintenance of manufacturing equipment. Premium portion of overtime wages, raw materials and rent on the manufacturing building. Direct Labor, Variable Manufacturing overhead and Raw Materials. D. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Direct manufacturing costs include:
A.
B.
C.
D.
Depreciation, Raw Materials and Maintenance of manufacturing
equipment.
Premium portion of overtime wages, raw materials and rent on the
manufacturing building.
Direct Labor, Variable Manufacturing overhead and Raw Materials.
None of the above.
What are Prime Costs?
A.
B
C.
D.
The major cost used to produce a product.
Costs that are reduce the profit of a product.
Raw Materials and Direct Labor
Direct Labor and Manufacturing Overhead.
What are differential Revenues?
A.
B.
C.
D.
Differential Revenues are the differences in revenues between any
competing alternatives to the solution of a problem.
They are Costs that increase the revenue a Product Line.
Any Revenue that increases when costs go down.
A Revenue the moves in the opposite direction of a Cost.
The linear equation method of determining breakeven in units is superior to other
methods of calculating the breakeven because:
A.
ABCD
C.
D.
it uses algebra to calculate the breakeven point.
it is the equation for a straight line.
is the most accurate method of calculating the breakeven point.
None of the above.
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