Which of the following is NOT an engineered cost?
A) direct material cost of a major component of the product
B) advertising costs for a new product that the factory will start producing
C) the cost of direct laborers who work in the factory
D) depreciation of all factory tools

Question

Quizplus · Accepted Answer

Engineered costs are directly associated with the production process, such as direct materials, direct labor, and depreciation of production equipment. Advertising costs, however, are considered non-engineered costs because they are not directly tied to the manufacturing or production process but rather to marketing and sales activities.

Which of the Following Is NOT an Engineered Cost