The wage of a factory floor supervisor who oversees several jobs is treated as indirect:
ALeases
BLevies
CLosses
DLabour
Answer & Solution
Correct answer: D. Labour
1. The supervisor's time cannot be split between individual jobs.
2. The work supports the factory rather than one product.
3. The wage is indirect labour.
_Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
Keep practising Job Order Costing
Browse all Job Order Costing questions for CIMA Management Level, or explore more Accounting topics.