Asked by Grace Ecton on May 31, 2024
Verified
Which of the following is an example of a factory overhead cost?
A) repair and maintenance cost on the administrative building
B) factory heating and lighting cost
C) insurance premiums on salespersons' automobiles
D) president's salary
Factory Overhead Cost
Represents indirect manufacturing costs not directly attributable to specific units or batches of production, such as maintenance and utilities.
Insurance Premiums
Regular payments made to an insurance company in exchange for coverage, protecting against possible financial losses or liabilities.
Factory Heating and Lighting
This refers to the costs associated with heating and illuminating manufacturing facilities, often considered as part of the overhead expenses in product costing.
- Identify examples of factory overhead costs.
- Recognize the differentiation between cost types like direct materials, direct labor, and factory overhead.
Verified Answer
Learning Objectives
- Identify examples of factory overhead costs.
- Recognize the differentiation between cost types like direct materials, direct labor, and factory overhead.
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