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Which of the following is an indirect manufacturing cost in a manufacturing company?

a. Indirect Materials
b. Real estate taxes on the factory
c. Salary of production floor manager
d. All of the above would be considered indirect manufacturing costs

Respuesta :

Answer:

d

Explanation:

Indirect costs are costs of production that cannot be directly linked to a unit, activity or product.

Indirect manufacturing costs are cost of production that cannot be directly linked to a good that is produced.

Examples of indirect manufacturing cost include :

  • Indirect Materials
  • utility
  • machine maintenance  
  • Real estate taxes on the factory
  • Depreciation
  • Salary of production floor manager

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