It is a cost-consumed expense. A utility payment is an example of a cost-consumed expense. The accounting treatment for utility expenses incurred by a company in manufacturing operations is considered part of its factory overhead.
Utility expenses are the costs consumed in a reporting period related to electricity, heat, sewer, and water. Sometimes they are also associated with expenditures for ongoing telephone and internet service.
Thus, the utility expense is a cost-consumed expense. Such expenses are using electricity, heat, and water supply.
Learn more about Utility Expenses here:
https://brainly.com/question/5374399
#SPJ1
