Which of these costs is a direct cost for a manufactured wood chair?
A) Rent Expense for factory building
B) Depreciation Expense on factory equipment
C) Wood used to manufacture chair
D) Salary Expense of factory supervisor

Question

Quizplus · Accepted Answer

The cost of the wood used to manufacture the chair is a direct cost because it is directly related to the production of the chair. Rent expense, depreciation expense, and salary expense are indirect costs because they are not directly related to the production of a specific chair, but rather to the overall operation of the factory.

Which of These Costs Is a Direct Cost for a Manufactured