Which of the Following Costs Would Not Be Classified as Factory

question 80

Multiple Choice

Which of the following costs would not be classified as factory overhead?

• A)Property taxes on maintenance machinery.
• B)Insurance on factory building.
• C)Wages of the factory janitor.
• D)Rubber for the soles of shoes produced.
• E)Small tools used in production.

---

Definitions:

Freight-In

The cost associated with transporting goods into a warehouse or to the buyer, often included in the inventory cost.

Installation

The act of setting up or assembling machinery, equipment, software, or hardware to make it ready for operation.

Fully-Depreciated

A state where an asset has reached the end of its useful life for accounting purposes, with its book value equaling its salvage value or zero.

Leasehold Improvements

Enhancements made to a rental property by a lessee, typically to tailor the space to their specific business needs.