Accounting: Manufacturing Overhead

false

Commissions paid to sell products are reported as part of the cost of goods sold.

true

In general, manufacturing overhead has increased as a percentage of product costs during the past 80 years.

true

Manufacturing overhead costs are also known as indirect manufacturing costs.

true

Manufacturing overhead must be assigned to both work-in-process inventory and finished goods inventory for external financial reporting purposes.

false

Selling, general and administrative costs are part of manufacturing overhead.

an indirect

The depreciation on the machines used on the manufacturing line is considered to be _________________ manufacturing cost.

service or support

The factory maintenance department and the factory administration department are examples of __________ departments.

false

The salary of the president of a manufacturer is part of the manufacturing overhead costs.

false

The use of a plant-wide rate will be more equitable than the use of departmental rates for allocating manufacturing overhead.

false

To be in compliance with generally accepted accounting principles, selling and administrative expenses and interest expense should be allocated to the cost of products manufactured in order to properly value inventories on a manufacturer's balance sheet.

little

Using only machine hours for assigning manufacturing overhead will likely result in too ___________ costs for low volume products.

indirect labor

Which of the following are part of manufacturing overhead?

manufacturing

Factory overhead and burden are terms used as alternatives for the term __________ overhead.

true

Only direct manufacturing costs are assigned to inventories and cost of goods sold.

machine hours

Traditional costing is more likely to be associated with allocating manufacturing overhead on the basis of