Asked by Aishah Khalea on Jun 28, 2024
Verified
Depreciation on factory plant and equipment is an example of factory overhead cost.
Factory Overhead Cost
Expenses related to the operation of a manufacturing facility that are not directly tied to a specific product, including utilities, depreciation, and maintenance.
Depreciation
The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.
- Achieve comprehension regarding the distribution of manufacturing costs into direct materials, direct labor, and factory overhead.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
True
Explanation :
Depreciation on factory plant and equipment is a cost associated with the manufacturing process and is included in the calculation of factory overhead cost.
Learning Objectives
- Achieve comprehension regarding the distribution of manufacturing costs into direct materials, direct labor, and factory overhead.