Which of the following manufacturing costs is an indirect cost of producing a product?
A) oil lubricants used for factory machinery
B) commissions for sales personnel
C) hourly wages of an assembly worker
D) memory chips for a microcomputer manufacturer

Question

Quizplus · Accepted Answer

Oil lubricants used for factory machinery are considered indirect costs because they do not directly become part of the finished product and cannot be easily traced to specific units of product. They are necessary for the production process but are not directly incorporated into the product itself.

Which of the Following Manufacturing Costs Is an Indirect Cost