The cost of electricity used in the production of multiple products would be classified as a indirect cost.

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be directly traced to a specific product or activity, but are necessary for the overall operation of a business. The cost of electricity used in production would be considered an indirect cost as it is necessary for the overall operation of the business, but cannot be directly traced to a specific product.

The Cost of Electricity Used in the Production of Multiple