Wages paid to machine operators on an assembly line are classified as a ________.
A) direct material cost
B) direct manufacturing labor cost
C) manufacturing overhead cost
D) period cost

Question

Quizplus · Accepted Answer

Wages paid to machine operators on an assembly line are considered as direct manufacturing labor cost as they are directly involved in the production process. Direct material cost refers to the cost of raw materials used in the production process, manufacturing overhead cost includes indirect costs such as rent, utilities, and depreciation, while period cost refers to non-manufacturing expenses such as sales and administrative expenses.

Wages Paid to Machine Operators on an Assembly Line Are