Which of the following costs is an indirect product cost?
A)property taxes on plant facilities
B)wages of assembly workers
C)materials used
D)president's salary

Question

Quizplus · Accepted Answer

Indirect product costs are costs that cannot be easily traced to the product being manufactured. Property taxes on plant facilities are an example of an indirect product cost, as they are necessary for the production process but cannot be directly linked to a specific product. The other options are all direct product costs, as they can be directly traced to the product being manufactured.

Which of the Following Costs Is an Indirect Product Cost