With JIT manufacturing,which of the following costs would be considered a direct product cost?
A)insurance on the plant
B)utilities used for manufacturing
C)janitors' salaries
D)salary of the plant supervisor

Question

Quizplus · Accepted Answer

Utilities used for manufacturing would be considered a direct product cost because they are directly related to the production process. Insurance on the plant, janitors' salaries, and salary of the plant supervisor would be considered indirect product costs as they are not directly related to the production process but are necessary for the overall operation of the plant.

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