Indirect production costs do NOT include ________.
A) property taxes on factory building
B) rent expense on factory building
C) wages of security guards at corporate headquarters
D) wages of forklift truck operators in assembly area

Question

Quizplus · Accepted Answer

Indirect production costs refer to expenses that cannot be directly linked to the production of a specific product or service. Property taxes and rent expenses on factory buildings are examples of indirect production costs because they are necessary for the production process. Wages of security guards at corporate headquarters, on the other hand, are not related to the production process and therefore not considered indirect production costs. Wages of forklift truck operators in the assembly area are considered direct production costs because they are directly related to the production of goods.

Indirect Production Costs Do NOT Include ________