When an automobile made in a Toyota factory is the cost object,the wages of the security guard in the factory would probably be classified as a(n)________.
A) direct production cost
B) indirect production cost
C) direct nonproduction cost
D) indirect nonproduction cost

Question

Quizplus · Accepted Answer

The wages of the security guard in the factory are considered an indirect production cost because they cannot be directly traced to the production of a specific automobile, but they are necessary for the production process to occur.

When an Automobile Made in a Toyota Factory Is the Cost