Which of the Following Is an Example of a Manufacturing

question 101

Multiple Choice

Which of the following is an example of a manufacturing overhead cost?

• A)Wages paid to security personnel at the corporate office building
• B)The cost of electricity used to run the oven in which Domino's bakes it pizzas
• C)Cost of shipping product to customers
• D)The salary of the president of the company

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Definitions:

Cost of Goods Sold

The direct monetary outlays for the creation of goods a company markets, including costs for labor and materials.

Cost of Goods Sold

Costs directly incurred from the process of manufacturing goods that a company sells, including the costs of materials and labor.

Merchandise Sales

The revenue generated from selling goods that a company has purchased or produced for resale.

Gross Margin

The difference between revenue and cost of goods sold, which represents the total profit before deducting operating expenses.