An example of direct matching of an expense with revenues would be
A) depreciation expense.
B) office salaries expense.
C) direct labor costs incurred to produce inventory sold during a period.
D) advertising expense.

Question

Quizplus · Accepted Answer

Direct labor costs incurred to produce inventory sold during a period is an example of direct matching of an expense with revenues. This is because the cost of the direct labor used to produce the inventory is directly related to the revenue generated from selling that inventory.

An Example of Direct Matching of an Expense with Revenues