Achair manufacturer makes custom chairs using hand tools, wood, glue, and varnish. which of the following statements is true? a. the costs of wood and glue would be treated as direct costs. b. wood, glue, and varnish would all be direct materials. c. wood would be accounted for as a direct cost, and glue and varnish as indirect costs. d. the concepts of direct and indirect costs are not applicable here.

At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.