A plant manufactures several different products. If a particular product is the cost object, then the wages of the plant supervisor can be classified as a(n) ________.
A) direct cost because it occurs in the production facility
B) indirect manufacturing cost and therefore is an inventoriable cost
C) variable cost as it will vary on a per unit basis depending on volume
D) period cost

Question

Quizplus · Accepted Answer

The wages of the plant supervisor are considered an indirect manufacturing cost because they cannot be directly traced to the production of a specific product. These costs are part of the overhead and are therefore inventoriable costs, meaning they are included in the cost of inventory until the goods are sold.

A Plant Manufactures Several Different Products