Multiple choice

Directions: Choose the correct option for the given question.

Warehousing cost is an item of

  1. distribution overhead

  2. office overhead

  3. material cost

  4. prime cost

  5. selling overhead
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Warehousing costs are incurred to store finished goods until they are sold. Therefore, they are classified as distribution overheads.

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