11. Many companies recognize three major categories of costs of manufacturing a product. These are direct materials, direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile? A. The cost of laborers who place who place tires on each automobile. B. The cost of small tools used in mounting tires on each automobile. C. The cost of the tires on each automobile. D. The delivery costs for the tires on each automobile.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 1E: Indicate whether each of the following costs of an automobile manufacturer would be classified as...
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11. Many companies recognize three major categories of costs of manufacturing a product. These are direct materials,
direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile?
A. The cost of laborers who place who place tires on each automobile.
B. The cost of small tools used in mounting tires on each automobile.

C. The cost of the tires on each automobile.
D. The delivery costs for the tires on each automobile.

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