Reference:
Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and retailers across the country. The company has two product lines: milk chocolate bars and chocolate covered almonds. Classify the following company's expenses if the cost object is a single product line (either milk chocolate bars or chocolate covered almonds).
-Salaries for milk chocolate bars production line workers 88)
A)Direct product cost.
B)Indirect product cost.
C)Indirect period cost.
D)Direct period cost.

Question

Reference: 
Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and retailers across the country. The company has two product lines: milk chocolate bars and chocolate covered almonds. Classify the following company's expenses if the cost object is a single product line (either milk chocolate bars or chocolate covered almonds).
-Salaries for milk chocolate bars production line workers 88)
A)Direct product cost.
B)Indirect product cost.
C)Indirect period cost.
D)Direct period cost.

Quizplus · Accepted Answer

Salaries for milk chocolate bars production line workers are directly related to the production of milk chocolate bars, which makes it a direct product cost.

Reference: Charlie's Chocolate Factory Manufactures Chocolate Bars and Ships Them Directly