Factory Insurance Is an Indirect Product Cost and Part of Overhead

question 34

True/False

Factory insurance is an indirect product cost and part of overhead.

---

Definitions:

Outstanding Checks

Outstanding checks are checks that have been written and recorded in the account holder's register but have not yet been cleared or cashed by the bank.

Adequate Cash Flow

Sufficient amounts of cash on hand that an entity has to meet its financial obligations and operational needs.

Bills

Documents indicating a transaction or an obligation to pay for goods or services received.

QBO

Refers to QuickBooks Online, an accounting software based in the cloud, aimed at assisting small to medium businesses.