Question
Assume you have a friend who owns a football factory. The friend needs some help classifying costs into either direct materials, direct labor, manufacturing overhead,
Assume you have a friend who owns a football factory. The friend needs some help classifying
costs into either direct materials, direct labor, manufacturing overhead, selling, or administrative
costs.
1. The leather used to make the footballs.
(A) Direct Materials (B) Direct Labor (C) Manufacturing Overhead (D) Selling (E) Administr.
2. The rags used to clean the machinery in the football factory.
(A) Direct Materials (B) Direct Labor (C) Manufacturing Overhead (D) Selling (E) Administr.
3. Rent for the football factory.
(A) Direct Materials (B) Direct Labor (C) Manufacturing Overhead (D) Selling (E) Administr.
4. Wages paid to employees who put the footballs together.
(A) Direct Materials (B) Direct Labor (C) Manufacturing Overhead (D) Selling (E) Administr.
5. The salary of the factory supervisor.
(A)Direct Materials (B) Direct Labor (C) Manufacturing Overhead (D) Selling (E) Administr.
6. Your friend's salaryshe's the CEO of the company and works at company headquarters.
(A)Direct Materials (B) Direct Labor (C) Manufacturing Overhead (D) Selling (E) Administr.
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
