Which of the Following Adjustments Is NOT Made to Factory

question 42

Multiple Choice

Which of the following adjustments is NOT made to Factory Overhead on the work sheet?

• A) factory equipment insurance
• B) factory building insurance
• C) office supplies
• D) factory supplies

---

Definitions:

Physical Inventory Count

An assessment method where a business physically counts its entire inventory to verify stock records and accounts.

Perpetual Inventory System

An inventory management method where updates to inventory records are made in real-time following each receipt or sale of inventory items.

Periodic Inventory System

An inventory accounting system where the inventory is updated in the accounting records periodically, typically at the end of an accounting period, rather than after each transaction.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor expenses.