What Are the Manufacturing Costs That Include Factory Utilities,general Factory

question 52

Multiple Choice

What are the manufacturing costs that include factory utilities,general factory labor such as custodians or security guards,factory managers' salaries,storage,insurance,and other manufacturing-related costs?

• A)Direct costs
• B)Plant costs
• C)Overhead costs
• D)Manmade costs

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Definitions:

Proportional Allocation

A method of distributing costs, resources, or revenues among various accounts or projects based on a predetermined criterion, such as usage or benefit.

Residual Income

The amount of income that an individual or business has after all expenses and debts have been paid.

Return on Investment

A financial metric used to gauge the profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Operating Income

EBIT, which stands for Earnings Before Interest and Taxes, indicates a firm's profit derived specifically from its primary business activities.