Which of the Following Is an Example of a Factory

question 97

Multiple Choice

Which of the following is an example of a factory overhead cost?

• A) Repair and maintenance cost on the administrative building
• B) Factory heating and lighting cost
• C) Insurance premiums on salespersons' automobiles
• D) President's salary

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Definitions:

Non-current Assets

Non-current assets are long-term resources owned by a company, expected to provide economic benefits beyond one year, such as property, plant, and equipment (PP&E), and intangible assets.

Direct Method

A cash flow statement presentation that lists major categories of gross cash receipts and payments.

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including material, labor, and overhead costs, directly affecting gross profit.

Accounts Payable

A liability representing an amount owed by an entity to its creditors/suppliers for goods and services purchased on credit.