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Classify the Following Costs as Direct, Indirect, or Neither

Question 173

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Classify the following costs as direct, indirect, or neither:

Premises:
insurance expired on administrative facilities
utilities on factory building
indirect materials used
salespersons’ salaries
utilities on administrative facilities
factory equipment depreciation
direct materials used
direct labor incurred
office equipment depreciation
indirect labor incurred
administrative office salaries
Responses:
indirect
neither
direct

Correct Answer:

insurance expired on administrative facilities
utilities on factory building
indirect materials used
salespersons’ salaries
utilities on administrative facilities
factory equipment depreciation
direct materials used
direct labor incurred
office equipment depreciation
indirect labor incurred
administrative office salaries
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