Indirect labor and indirect materials are classified as
A) factory overhead and product costs
B) factory overhead and period costs
C) operating costs and period costs
D) operating costs and product costs

Question

Quizplus · Accepted Answer

Indirect labor and indirect materials are costs that cannot be directly traced to specific products but are necessary for the production process. They are classified as factory overhead, which is a type of product cost, because they are incurred in the manufacturing process and are allocated to the cost of goods manufactured.

Indirect Labor and Indirect Materials Are Classified as