Asked by Derise Major on May 04, 2024

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Verified

Another term for factory overhead is

A) surplus
B) period cost
C) supervisory cost
D) factory burden

Factory Overhead

All indirect costs related to the production process, such as utilities, maintenance, and supervision, not directly tied to specific units produced.

Factory Burden

Another term for manufacturing overhead, encompassing all indirect costs involved in operating a factory, excluding direct materials and labor costs.

Surplus

The amount by which a company's income exceeds its spending, or in a broader sense, an excess of assets over liabilities.

  • Highlight and arrange the financial outlays in manufacturing, focusing on direct materials, direct labor, and factory overhead.
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Verified Answer

AO
Abigail OrschellMay 06, 2024
Final Answer :
D
Explanation :
Factory overhead is also commonly referred to as factory burden, which includes all indirect expenses incurred in the manufacturing process.