Which of the Following Is Part of Factory Overhead Cost

question 187

Multiple Choice

Which of the following is part of factory overhead cost?

• A) sales commissions
• B) depreciation of factory equipment and machines
• C) depreciation of salesperson's vehicle
• D) direct materials used

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Definitions:

Incoming Goods

Refers to materials or products that are received by a warehouse or a production facility from suppliers.

JIT Partnership Goals

Objectives aimed at implementing Just-In-Time manufacturing principles, focusing on reducing inventory and waste while improving efficiency and responsiveness.

In-Transit Inventory

Goods and materials that are in the process of being transported from one location to another, but have not yet reached their final destination.

JIT

Just-In-Time, an inventory management strategy that aims to reduce waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.