Which of the Following Is a Part of Manufacturing Overhead

question 83

Multiple Choice

Which of the following is a part of manufacturing overhead?

• A) cost of raw materials
• B) wages of assembly line workers
• C) factory insurance
• D) depreciation on office furniture

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Definitions:

Break-Even

The point at which total costs and total revenues are equal, resulting in neither profit nor loss.

Margin of Safety

Margin of safety represents the difference between actual or projected sales and the break-even sales levels, measuring the buffer a company has before it incurs a loss.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.