COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following items is not included in factory overhead?
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Factory depreciation and supplies
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Costs of Marketing departments
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Costs of Maintenance departments
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Costs of service departments
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Explanation:
Detailed explanation-1: -Factory overhead represents the costs incurred by an organization when manufacturing a product, except the costs of direct labor and materials.
Detailed explanation-2: -Factory overhead excludes: Product materials. Employee costs of those actively manufacturing the product. External administrative overhead, such as an outside headquarters or human resources.
Detailed explanation-3: -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.
There is 1 question to complete.