Which of the Following Expenses Is Included in Manufacturing Overhead

question 93

Multiple Choice

Which of the following expenses is included in manufacturing overhead?

• A)production line supervisor salary
• B)steel used to manufacture a car
• C)production line worker wages
• D)advertising for the product

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Definitions:

Adjusting Entries

Bookkeeping entries made at the end of an accounting period to update accounts for accruals and deferrals.

Insurance Expense

The cost incurred by a company for purchasing insurance policies, which is recognized as an expense over the period the insurance provides coverage.

Prepaid Insurance

An asset account representing insurance premiums that have been paid in advance and are gradually expensed over the period of coverage.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.