Which of the following is an administrative expense?

a.sales supplies used

b.rent on office facilities

c.advertising expense

d.salespersons salaries

Only the value of the inventory that is sold will appear on the income statement.

True

False

Which of the following would be an inappropriate activity base for allocating factory overhead costs?

a.machine hours

b.direct labor cost

c.salaries of supervisors

d.direct labor hours