In activity-based costing (ABC),the wage paid to an assembly-line worker would most likely be classified as:
A) overhead.
B) a product-level cost.
C) direct labour.
D) a facility-level cost.

Question

Quizplus · Accepted Answer

The wage paid to an assembly-line worker is a direct labour cost because it is directly related to the production of a product. Direct labour costs are assigned to the products or services being produced, rather than being classified as overhead or facility-level costs.

In Activity-Based Costing (ABC),the Wage Paid to an Assembly-Line Worker