Where a specific product is the cost object, the wages of a security guard would probably be classified as a(n):
A) direct, fixed cost
B) direct, variable cost
C) indirect, variable cost
D) indirect, fixed cost

Question

Quizplus · Accepted Answer

The wages of a security guard are not directly traceable to a specific product, making them an indirect cost. Since the wages do not vary with production levels, they are considered a fixed cost.

Where a Specific Product Is the Cost Object, the Wages