Nonmanufacturing Overhead (Practice Quiz)

For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions press or click on the blank space provided.

If you have difficulty answering the following questions, learn more about this topic by reading our Nonmanufacturing Overhead (Explanation).


  1. 1.

    Selling expenses should be allocated to the cost of goods sold for external financial reporting.

    True
    Wrong.
    False
    Right!
  2. 2.

    According to U.S. accounting principles, interest expense is an indirect product cost.

    True
    Wrong.
    False
    Right!
  3. 3. SG&A is the acronym for
    __________
    selling, general and administrative
    ,
    __________
    selling, general and administrative
    and
    __________
    selling, general and administrative
    expenses.
  4. 4.

    SG&A expenses can be classified as _______________ costs.

    Period
    Right!
    Product
    Wrong.
  5. 5.

    Commissions expense is part of the cost of goods sold.

    True
    Wrong.
    False
    Right!
  6. 6.

    SG&A expenses can vary between products and between customers.

    True
    Right!
    False
    Wrong.
  7. 7.

    Activity based costing is recommended for the allocation of SG&A expenses in order to determine the true profitability of a product or a customer.

    True
    Right!
    False
    Wrong.

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Nonmanufacturing Overhead Outline

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