Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is an example of factory overhead?

Wages paid to assembly line workers

Depreciation on factory equipment

Sales commissions paid to sales staff

Direct materials used in production

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Verified step by step guidance

Understand the concept of factory overhead: Factory overhead refers to indirect costs incurred during the manufacturing process that cannot be directly traced to a specific product. Examples include utilities, depreciation, and maintenance costs related to the factory.

Analyze each option provided in the problem: Determine whether each cost is direct or indirect and whether it is related to the manufacturing process.

Option 1: Wages paid to assembly line workers - These are direct labor costs because they can be directly traced to the production of specific products. Therefore, this is not factory overhead.

Option 2: Depreciation on factory equipment - Depreciation is an indirect cost related to the factory's operations and cannot be directly traced to a specific product. This is an example of factory overhead.

Option 3: Sales commissions paid to sales staff - Sales commissions are related to selling and administrative expenses, not manufacturing. Therefore, this is not factory overhead. Option 4: Direct materials used in production - These are direct costs because they are directly traceable to the production of specific products. Therefore, this is not factory overhead.