Which One of the Following Would Not Be Classified as Manufacturing

question 49

Multiple Choice

Which one of the following would not be classified as manufacturing overhead?

• A)Indirect materials
• B)Insurance on factory building
• C)Indirect labour
• D)Direct materials

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Definitions:

Diminishing Returns

An axiom indicating that beyond a certain level, additional investments in a given domain will not yield proportionally higher returns unless other variables are adjusted.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor directly involved in production.

Production

The process of creating goods and services from various inputs such as labor, technology, and raw materials.

Variable Costs

Outlays that shift directly in line with the magnitude of output or production.