For an absorption costing income statement, which of the following would be considered an administrative expense? Salary of CFO: 175,000 Commissions: 200,000 Advertising: 750,000 Research and development: 120,000 Depreciation on corporate office: 60,000

For an absorption costing income statement, which of the following would be considered an administrative expense? Salary of CFO: 175,000 Commissions: 200,000 Advertising: 750,000 Research and development: 120,000 Depreciation on corporate office: 60,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

For an absorption costing income statement, which of the following would be considered an administrative expense?

Salary of CFO: 175,000

Commissions: 200,000

Advertising: 750,000

Research and development: 120,000

Depreciation on corporate office: 60,000

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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