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Depreciation of plant and machinery is a part of ________.
- Afactory overhead
- Bselling overhead
- Cdistribution overhead
- Dadministration overhead
Correct answer: A
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factory overhead
Depreciation of plant and machinery is a part of factory overhead. Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.
Depreciation of plant and machinery is a part of factory overhead. Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.