Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?
A)Plant supervisor salary
B)Machinery depreciation in the factory
C)Plant utilities
D)Cost of the automobile engines

Question

Quizplus · Accepted Answer

The cost of the automobile engines is a direct cost because it is directly related to the production of the automobiles. Indirect costs are expenses incurred in the manufacturing process that are not directly related to the production of a specific product, such as plant supervisor salary, machinery depreciation, and plant utilities.

Which of the Following Is Not an Example of an Indirect