Depreciation of plant and machinery is a part of ________.

A. factory overhead

B. selling overhead

C. distribution overhead

D. administration overhead

Answer: Option A

Solution(By Examveda Team)

Depreciation of plant and machinery is a part of factory overhead. Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.