Which of the following is an example of an indirect cost?
A)Cost of downtime
B)Cost of labor
C)Cost of materials
D)Cost of packaging materials

Question

Quizplus · Accepted Answer

Cost of downtime is an example of an indirect cost as it is not directly attributable to a specific product or service but affects the overall operation of the business. Choice B, C, and D are examples of direct costs as they can be easily attributed to a specific product or service.

Which of the Following Is an Example of an Indirect