Which of the Following Is Not Classified as Manufacturing Overhead

question 84

Multiple Choice

Which of the following is not classified as manufacturing overhead?

• A)The cost of depreciation on office equipment
• B)The cost of wages paid to the forklift operator in the factory
• C)The cost of wages for the plant manager
• D)The production foreman's salary

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Definitions:

Service Department

An organizational unit that provides support and services to other units within the organization, rather than producing goods or services for external customers.

Internal Service Departments

Departments within an organization that provide essential services to other departments rather than external customers, such as IT support or human resources.

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.

Investment Turnover

A ratio used to measure the efficiency of a company's use of its investments in generating sales revenue, indicating how well the company is utilizing its assets.