Asked by Reuben Acosta on Jul 04, 2024
Verified
Indirect labor and indirect materials are classified as
A) factory overhead and product costs
B) factory overhead and period costs
C) operating costs and period costs
D) operating costs and product costs
Indirect Labor
Labor costs not directly tied to the production of goods or services, such as maintenance and supervision.
Indirect Materials
Materials used in the production process that do not directly form part of the finished product and are not easily traced back to it, such as lubricants and cleaning supplies for machinery.
Factory Overhead
Costs associated with the manufacturing process that cannot be traced directly to specific units produced, including utilities and maintenance expenses.
- Understand the nuances between different cost classifications such as direct materials, direct labor, and factory overhead.
- Highlight examples of indirect manufacturing expenses.
Verified Answer
Learning Objectives
- Understand the nuances between different cost classifications such as direct materials, direct labor, and factory overhead.
- Highlight examples of indirect manufacturing expenses.
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