Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

What type of cost is direct labor?

Sunk cost

Direct cost

Indirect cost

Period cost

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Verified step by step guidance

Understand the definition of direct labor: Direct labor refers to the wages paid to workers who are directly involved in the production of goods or services. These costs can be directly traced to specific products or jobs.

Review the concept of direct costs: Direct costs are expenses that can be directly attributed to a specific product, service, or job. Examples include direct materials and direct labor.

Differentiate between the other cost types: Sunk costs are past costs that cannot be recovered, indirect costs are expenses that cannot be directly traced to a specific product, and period costs are costs that are expensed in the period they are incurred and are not tied to production.

Match direct labor to the correct cost type: Since direct labor can be directly traced to the production of goods or services, it falls under the category of direct costs.

Conclude that direct labor is classified as a direct cost based on its traceability to specific products or jobs.