If the cost object is the product, which of the following labour costs would be most likely to be classified as direct labour?
A) General manager's salary
B) Machine operator's wages
C) Accounting staff's salaries
D) Maintenance staff's wages

Question

Quizplus · Accepted Answer

Direct labour is the labour cost that can be directly traced to the production of a particular product. As machine operators work directly with the product, their wages are considered direct labour costs. The salaries of general managers and accounting staff are usually considered indirect labour costs since they are related to running the overall business rather than producing a specific product. The wages of maintenance staff could be considered either direct or indirect labour costs, depending on the nature of their work.

If the Cost Object Is the Product, Which of the Following