If the cost object is the product, which of the following labour costs would be most likely to be classified as direct labour?
A) General manager's salary
B) Accounting staff's salaries
C) Maintenance staff's wages
D) Machine operator's wages

Question

Quizplus · Accepted Answer

Direct labour costs are those that can be directly traced to the production of a product. Machine operator's wages are most likely to be directly involved in the production process, making them a direct labour cost. The general manager's salary and accounting staff's salaries would be considered indirect labour costs because they do not directly contribute to the production of the product. The maintenance staff's wages may be a combination of both direct and indirect labour costs, as they may be involved in both maintaining the production equipment and helping with the production process itself.

If the Cost Object Is the Product, Which of the Following