Direct or indirect factory cost?
Exercise and reference answers
- Left
- Direct cost
- Items
- Item
- Job materials
- Answer
- Direct cost
- Item
- Plant utility bill
- Answer
- Indirect cost
- Item
- Wood for a closet
- Answer
- Indirect cost
- Item
- Job assembly wages
- Answer
- Direct cost
- Item
- Supervisor salary
- Answer
- Indirect cost
- Item
- Wood for a cabinet
- Answer
- Direct cost
- Item
- Plant leak repair
- Answer
- Indirect cost
- Item
- Closet build wages
- Answer
- Indirect cost
- Right
- Indirect cost
- Instructions
- Swipe left for a direct cost, right for an indirect one.
Explanation
_Source: Jonick, Principles of Managerial Accounting, section 2.1 Introduction_