Which of the following properly describes the accounting for indirect labour costs?
A) Indirect labour costs are inventoriable product costs and are expensed as incurred.
B) Indirect labour costs are period costs and are expensed as incurred.
C) Indirect labour costs are period costs and are expensed when the manufactured product is sold.
D) Indirect labour costs are inventoriable product costs and are expensed when the manufactured product is sold.

Question

Quizplus · Accepted Answer

Indirect labour costs are considered part of manufacturing overhead, which is a component of inventoriable product costs. These costs are capitalized as part of the cost of inventory and expensed as cost of goods sold when the product is sold.

Which of the Following Properly Describes the Accounting for Indirect