Which of the Following Is Part of Factory Overhead Cost

question 187

Multiple Choice

Which of the following is part of factory overhead cost?

• A) sales commissions
• B) depreciation of factory equipment and machines
• C) depreciation of salesperson's vehicle
• D) direct materials used

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Definitions:

Relevant Range

The range of activity or volume over which the assumed cost behavior is valid, within which fixed and variable costs do not change.

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product, often considered in decision-making and pricing.

Relevant Range

The span of activity or production volume over which fixed and variable costs remain constant on a per-unit basis.

Direct Costs

Direct costs are expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.