Gains and Losses Resulting from Condemnations of Sec

question 92

True/False

Gains and losses resulting from condemnations of Sec.1231 property and capital assets held more than one year are classified as ordinary gains and losses.

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Definitions:

Factory Overhead Rate

The ratio of total indirect manufacturing costs to a specific basis, such as labor hours or machine hours, used to allocate overhead costs to products.

Direct Labor Costs

Expenses related to employees who physically manufacture a product.

Factory Overhead Cost

Indirect manufacturing costs that are not directly tied to the production of specific goods, including utilities, maintenance, and salaries of supervisors.

Overapplied/Underapplied

Terms used in cost accounting to describe the situation where the allocated indirect costs do not match the actual indirect costs, resulting in a discrepancy at the end of an accounting period.