Which one of the following items is typically an example of an indirect cost of a cost object?
A)courier charges for shipment delivery
B)manufacturing plant electricity
C)direct manufacturing labour
D)wood used for furniture manufacture
E)refundable sales tax on direct materials

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be easily traced to a specific cost object. Manufacturing plant electricity is an example of an indirect cost as it is not directly related to the production of a specific product but is still necessary for the operation of the manufacturing plant.

Which One of the Following Items Is Typically an Example