COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Factory depreciation and supplies
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Costs of service departments
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Costs of marketing departments
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Costs of maintenance departments
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Detailed explanation-1: -Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials.
Detailed explanation-2: -This includes the costs of indirect materials, indirect labor, machine repairs, depreciation, factory supplies, insurance, electricity and more. Manufacturing overhead is also known as factory overheads or manufacturing support costs.
Detailed explanation-3: -Direct costs, like the price of material and labor, are directly related to a facility’s manufacturing efforts and therefore aren’t part of the manufacturing overhead. Indirect costs, like electricity and rent, count as overhead expenses.
Detailed explanation-4: -ANSWER: Goods in process inventory. Factory overhead costs normally include all of the following except: a. Indirect labor costs.