Which of the Following Costs Would Not Be Included in Factory

question 2

Multiple Choice

Which of the following costs would not be included in factory overhead in the manufacture of a student's desk?

• A)The oil used to maintain the machinery.
• B)The salary of the supervisor of the Assembly department.
• C)The wood used to form the top of the desk.
• D)The wages of personnel who perform inspections of incoming materials.

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Definitions:

Accumulated Depreciation

The cumulative depreciation expense charged for a fixed asset since its initial use.

Fair Market Value

The price at which an asset would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset, over its useful life, up to the current date.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life, used in calculating depreciation.