When determining the cost of a manufactured product,a factory janitor's wages would be classified as:
A)a direct cost.
B)an indirect cost.
C)a period cost.
D)none of the above.

Question

Quizplus · Accepted Answer

Direct costs are those that can be easily traced to a specific product or service, such as raw materials and labor for assembling the product. Indirect costs, on the other hand, cannot be easily traced to a specific product or service but are still necessary for the factory to operate efficiently, such as utilities, rent, and salaries for support staff like the janitor. Therefore, the factory janitor's wages would be classified as an indirect cost. Period costs, on the other hand, are expenses that are not directly related to the production of goods or services, such as advertising and office supplies, and are expensed on a monthly or yearly basis.

When Determining the Cost of a Manufactured Product,a Factory Janitor's