Which of the Following Accounts Is a Liability

question 12

Multiple Choice

Which of the following accounts is a liability?

• A)Service revenue
• B)Accounts payable
• C)Prepaid expenses
• D)Salary expense

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Definitions:

Fixed Manufacturing Overhead

The consistent, non-variable costs associated with manufacturing products, such as salaries and rent for factory premises.

Direct Labor Costs

Costs that are directly associated with the production of goods, such as wages paid to manufacturing staff.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual jobs or products based on a specific activity base.

Fixed Manufacturing Overhead

Manufacturing overhead costs that remain constant regardless of the level of production or activity volume.