Which of the Following Will Be Categorized as a Manufacturing

question 165

Multiple Choice

Which of the following will be categorized as a manufacturing overhead cost?

• A) depreciation on factory plant and equipment
• B) wages paid to assembly line workers
• C) administration charges of showroom
• D) cost of direct materials used

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Definitions:

Non-cash Items

Expenses or incomes recorded in the income statement which do not involve actual cash flow, such as depreciation, stock-based compensation, or provisions.

Cash Flow

The overall aggregation of money movement into and out of a firm, essentially determining its ability to quickly mobilize assets.

Revenues

Revenue obtained through standard business activities, factoring in discounts and allowances for goods returned.

Earnings Per Share

Earnings per share (EPS) is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.