Which of the Following Costs Would Not Be Classified as Factory

question 197

Multiple Choice

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

• A) Property taxes on maintenance machinery.
• B) Expired insurance on factory equipment.
• C) Wages of the factory janitor.
• D) Metal doorknobs used on wood cabinets produced.
• E) Small tools used in production.

Understand the difference between economic profit and accounting profit.

Grasp the concept of sunk costs and their impact on business decisions.

Understand the principles behind the Third Industrial Revolution and its potential effects on production and transportation costs.

Comprehend how additive manufacturing (3-D printing) affects economies of scale, production costs, and manufacturing industry dynamics.

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Definitions:

United States Congress

The bicameral legislative body of the federal government of the United States, consisting of the House of Representatives and the Senate.

Days

Units of time equal to 24 hours, representing one complete rotation of the Earth on its axis.

Administrative Procedures Act

A United States federal statute that governs the way administrative agencies of the federal government may propose and establish regulations.

Enabling Statute

Legislation that grants a new agency or body the authority to act and outlines the scope of its powers.