Which of the Following Costs Would Not Be Included as Part

question 89

Multiple Choice

Which of the following costs would not be included as part of manufacturing overhead?

• A)Insurance on sales vehicles.
• B)Depreciation of production equipment.
• C)Lubricants for production equipment.
• D)Direct labor overtime premium.

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Definitions:

Greenfield Operation

A greenfield operation involves a company starting a new venture from the ground up in a foreign country, rather than purchasing or partnering with an existing local company.

Subsidiary Company

A company that is owned or controlled by another company, which is referred to as the parent company.

Licensing

A business agreement in which one party allows another to use its brand, patent, or technology for a fee or royalty.

Turnkey Operations

A type of project that is constructed so that it can be sold to any buyer as a completed product or operation.