Asked by Edward Chang on May 03, 2024
Verified
The factory superintendent's salary would be included as part of the cost of products manufactured under the absorption costing concept.
Absorption Costing
The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.
Factory Superintendent's Salary
An operational cost, this is the compensation paid to the individual responsible for overseeing the production in a manufacturing plant.
- Identify which costs are included in the cost of products manufactured under the absorption costing concept.
Verified Answer
TM
Tayte MotsingerMay 09, 2024
Final Answer :
True
Explanation :
Under the absorption costing concept, all manufacturing costs, including direct materials, direct labor, and both variable and fixed manufacturing overhead (such as the factory superintendent's salary), are considered part of the cost of products manufactured.
Learning Objectives
- Identify which costs are included in the cost of products manufactured under the absorption costing concept.
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