{"id":189045,"date":"2024-03-26T21:38:06","date_gmt":"2024-03-26T21:38:06","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/?p=189045"},"modified":"2024-03-26T21:38:06","modified_gmt":"2024-03-26T21:38:06","slug":"which-of-the-following-is-not-a-factory-overhead-cost","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/which-of-the-following-is-not-a-factory-overhead-cost\/","title":{"rendered":"Which of the following is not a factory overhead cost?"},"content":{"rendered":"

Which of the following is not a factory overhead cost?<\/p>\n

In the realm of manufacturing, factory overhead costs play a significant role in determining a company’s overall production expenses. These costs include various indirect expenses that cannot be directly attributed to a specific product but are essential for the manufacturing process. However, among the following options, one item does not fall under the category of factory overhead cost. Let’s explore the options and uncover the answer.<\/p>\n

**Raw materials cost**: While raw materials are undoubtedly an integral component of production expenses, they do not fall under the definition of factory overhead costs. Raw materials are generally considered direct costs, as they can be easily traced back to specific products.<\/p>\n

Factory overhead costs, on the other hand, encompass indirect expenses that are not directly identifiable with individual products. These costs include various items such as utilities, maintenance expenses, depreciation of factory equipment, factory insurance, property taxes, and indirect labor costs.<\/p>\n

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