Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles.
-Factory supply costs
A)Direct materials
B)Direct labour
C)Overhead
D)Selling expense
E)Administrative expense

Question

Quizplus · Accepted Answer

Factory supply costs are generally considered overhead costs as they are indirect expenses that cannot be directly allocated to a specific product or process.

Select the Appropriate Classification for Each of the Costs Incurred