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Shop rags purchased and used to clean production equipment are classified as what type of cost? Multiple Choice period cost. direct material cost. indirect material cost. opportunity cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Shop rags purchased and used to clean production equipment are classified as what type of cost?
Multiple Choice
period cost.
direct material cost.
indirect material cost.
opportunity cost.

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