When the cost object is a unit produced, lubricating oil for production machines would be a(n):
A) Direct cost
B) Indirect cost
C) Sunk cost
D) Opportunity cost

Name: When the cost object is a unit produced, lubricating oil for production machines would be a(n): A) Direct cost B) Indirect cost C) Sunk cost D) Opportunity cost
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Question

Quizplus · Accepted Answer

Lubricating oil for production machines is an indirect cost because it cannot be traced directly to a specific unit produced, but is necessary for the overall production process.

When the Cost Object Is a Unit Produced, Lubricating Oil