Depreciation of factory equipment is classed as which overhead?
AManufacturing overhead
BSelling overhead
CDistribution overhead
DAdministrative overhead
Answer & Solution
Correct answer: A. Manufacturing overhead
The fall in value of equipment used in the factory is a manufacturing overhead.
Keep practising Job Costing
Browse all Job Costing questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Cost accounting is mainly concerned with information for whom?How does factory rent behave as output changes?How are indirect costs assigned to cost objects?Lubricants used to keep machines running are classed as what?Which of these is a direct material?Cost-plus pricing is uncommon in which kind of market?The markup in cost-plus pricing is meant to give what?Unit cost is Rs 250 and the markup is 8 percent of cost. Selling price?