As Plant Controller, you are trying to determine the costs over which you have the most control on a day-to-day basis.Your goal is to achieve better profitability.The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs.Which of the following items would be classified as manufacturing overhead?
A)Factory janitor
B)General corporate liability insurance
C)Cost of landscaping the corporate office
D)The western division's vice president's salary

Question

Quizplus · Accepted Answer

Manufacturing overhead includes all indirect costs incurred in the production process, such as factory utilities, machinery maintenance, and wages for production support staff like janitors. Choices B-D are not related to the production process and would not be included in manufacturing overhead expenses.

As Plant Controller, You Are Trying to Determine the Costs