Depreciation of plant and machinery is a part of factory overhead.

Here's why:

1. Selling overhead: This refers to the expenses related to the selling and distribution of the products. It includes advertising, sales staff salaries, commission, etc. Depreciation of plant and machinery doesn't fall under this category.

2. Administration overhead: This includes expenses related to the general administration of the company, such as salaries of administrative staff, office supplies, etc. Again, depreciation of plant and machinery doesn't fall under this category.

3. Distribution overhead: This includes costs associated with storing and delivering the product to the customer. Depreciation of plant and machinery doesn't fall under this category.

4. Factory overhead: This includes all the costs that are indirectly associated with the actual production process. It includes things like depreciation of plant and machinery, utilities, maintenance of the factory, etc. Therefore, depreciation of plant and machinery is a part of factory overhead.

Question

Depreciation of plant and machinery is a part of factory overhead.

Here's why:

1. Selling overhead: This refers to the expenses related to the selling and distribution of the products. It includes advertising, sales staff salaries, commission, etc. Depreciation of plant and machinery doesn't fall under this category.

2. Administration overhead: This includes expenses related to the general administration of the company, such as salaries of administrative staff, office supplies, etc. Again, depreciation of plant and machinery doesn't fall under this category.

3. Distribution overhead: This includes costs associated with storing and delivering the product to the customer. Depreciation of plant and machinery doesn't fall under this category.

4. Factory overhead: This includes all the costs that are indirectly associated with the actual production process. It includes things like depreciation of plant and machinery, utilities, maintenance of the factory, etc. Therefore, depreciation of plant and machinery is a part of factory overhead.

Knowee AI · Accepted Answer

Depreciation of plant and machinery is a part of factory overhead.

Here's why:

1. Selling overhead: This refers to the expenses related to the selling and distribution of the products. It includes advertising, sales staff salaries, commission, etc. Depreciation of plant and machinery doesn't fall under this category.

2. Administration overhead: This includes expenses related to the general administration of the company, such as salaries of administrative staff, office supplies, etc. Again, depreciation of plant and machinery doesn't fall under this category.

3. Distribution overhead: This includes costs associated with storing and delivering the product to the customer. Depreciation of plant and machinery doesn't fall under this category.

4. Factory overhead: This includes all the costs that are indirectly associated with the actual production process. It includes things like depreciation of plant and machinery, utilities, maintenance of the factory, etc. Therefore, depreciation of plant and machinery is a part of factory overhead.

Depreciation of plant and machinery is a part of.a.selling overhead.b.administration overhead.c.distribution overhead.d.factory overhead.

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