Which of the following is an example of a factory overhead cost?
A) repair and maintenance cost on an administrative building
B) factory heating and lighting cost
C) insurance premiums on salespersons' automobiles
D) president's salary

Question

Quizplus · Accepted Answer

Factory overhead costs are expenses that are indirectly related to the production process, such as factory heating and lighting cost. Repair and maintenance cost on an administrative building (A) are not directly related to the production process, insurance premiums on salespersons' automobiles (C) are selling expenses and president's salary (D) is an administrative expense.

Which of the Following Is an Example of a Factory