Manufacturing companies have inventory accounts, but merchandising companies do not. O True False Repair and maintenance...

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Manufacturing companies have inventory accounts, but merchandising companies do not. O True False

Repair and maintenance costs for manufacturing equipment are included in manufacturing overhead. O O True False

business accounting

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Answer 1

Answer #1

There are two types of cost in manufacturing process:

Direct manufacturing cost and indirect manufacturing cost

Any manufacturing cost which is not directly effect on manufacturing process is called indirect manufacturing cost. All indirect manufacturing cost is called manufacturing overhead.

So repair and maintenance cost of manufacturing cost is not direct cost it is indirect manufacturing cost

So above statement is true.

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Answer 2

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Distinguish among the types of inventory accounts used for merchandising and manufacturing companies?

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