When determining the cost of a manufactured product,the cost of lighting the factory 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

Lighting the factory is an indirect cost since it cannot be directly traced to the production of a specific product. It is a necessary expense for the overall operation of the factory but not directly related to the cost of manufacturing a single product.

When Determining the Cost of a Manufactured Product,the Cost of Lighting