With JIT manufacturing,which of the following costs would be considered an indirect product cost?
A)cost of specific-purpose equipment
B)cost of equipment maintenance
C)property taxes on the plant
D)salary of a manufacturing cell worker

Question

Quizplus · Accepted Answer

Property taxes on the plant are considered an indirect product cost because they cannot be directly traced to a specific product, but are still necessary for the manufacturing process. The other costs listed (cost of specific-purpose equipment, cost of equipment maintenance, salary of a manufacturing cell worker) are considered direct product costs because they can be easily traced to a specific product.

With JIT Manufacturing,which of the Following Costs Would Be Considered