Which of the Following Is an Example of an Accrued

question 148

Multiple Choice

Which of the following is an example of an accrued expense?

• A) Salary owed but not yet paid
• B) Fees received but not yet earned
• C) Supplies on hand
• D) A two-year premium paid on a fire insurance policy

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, depreciation, and salaries for management.

Fixed Manufacturing Cost

Costs that remain constant regardless of the level of production, such as salaries of permanent employees and depreciation of factory equipment.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, depreciation, and maintenance of equipment.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including labor and materials costs.