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Question
A typical factory overhead cost is ______.
Options
Audit
Compensation of plant manager
Design distribution
Internal
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Solution
A typical factory overhead cost is compensation of plant manager.
Explanation:
The plant manager’s salary is an indirect manufacturing cost incurred to operate the factory; it can’t be traced to a specific product, so it is classified as factory (production) overhead rather than a direct or distribution cost.
RELATED QUESTIONS
Explain various types of Overheads.
Name and give examples of any two types of Overheads.
______ means amount spent on production or to provide services.
Which of the following is overhead cost?
An example of a production overhead would be ______.
Overhead is actually the total of ______.
Which of the following is related to office and administrative overheads?
Cotton used in manufacturing cloth, sugarcane used in producing sugar, rubber used in producing shoes are examples of ______.
Salary paid to a mill manager is an example of ______ cost.
What do you mean by the term Overheads?
What consist of indirect material, indirect labour, and indirect expenses?
Which of the following is best suited meaning of overhead?
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Explain the following:
Material Cost
