Which of the following costs generally do not include standard unit costs?
A)Direct materials costs
B)Indirect materials costs
C)Board of directors' salary
D)Depreciation on factory machine

Question

Quizplus · Accepted Answer

Board of directors' salary is an indirect cost that is not directly related to the production process and cannot be allocated to individual units of product, therefore it does not have a standard unit cost. Direct materials costs and indirect materials costs are related to the production process and can be allocated to individual units of product, hence they have standard unit costs. Depreciation on factory machine is a fixed cost and can be allocated to individual units of product, therefore it has a standard unit cost.

Which of the Following Costs Generally Do Not Include Standard