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