Where a specific manufactured product is the cost object,the salary of the security guard in the factory would probably be classified as a(n)________.
A)direct production cost
B)indirect production cost
C)direct nonproduction cost
D)indirect nonproduction cost

Question

Quizplus · Accepted Answer

The salary of the security guard is an indirect production cost because it cannot be easily traced to a specific manufactured product. It is necessary for the manufacturing process to occur but it is not directly tied to the production of any one product.

Where a Specific Manufactured Product Is the Cost Object,the Salary