The supplies, plant maintenance, plant rent, plant insurance and cleaning labor come under the type of costs called ____________?
Correct answer: B. factory overhead costs
- A. labor costs
- B. factory overhead costs
- C. finished costs
- D. manufacturing costs
Explanation
Supplies, plant maintenance, rent, insurance and cleaning labor support production but cannot normally be traced conveniently to one unit. They are therefore manufacturing, or factory, overhead costs.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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