Which of the following categories of expenses is subject to immediate recognition on the income statement?
A) Repairs and maintenance expense incurred on production equipment of a manufacturer
B) The salary of the company president
C) The salary of the production foreman
D) Utilities expense for the production line of a manufacturer

Question

Quizplus · Accepted Answer

The salary of the company president is a general and administrative expense which is recognized immediately on the income statement. Repairs and maintenance expense (option A), production foreman's salary (option C), and utilities expense (option D) are all manufacturing overhead expenses which are allocated to the cost of goods sold and recognized on the income statement when the related products are sold.

Which of the Following Categories of Expenses Is Subject to Immediate