A brewery produces many variety of beer.If the cost object is a particular brand of beer the factory supervisor salary is classified a/an _____________ cost of the brand of beer and a _____________ cost of the entire division.
A) Direct; Common
B) Indirect; Common
C) Direct; Prime
D) Fixed; Period

Question

Quizplus · Accepted Answer

The factory supervisor salary is an indirect cost of the particular brand of beer since it is not directly traceable to the production of that brand. However, it is a common cost of the entire division since the supervisor oversees the production of all the beer varieties.

A Brewery Produces Many Variety of Beer