Southeast Manufacturing Company has identified the following cost objects: Cost Object 1: The cost of operating the finishing department
Cost Object 2: The cost of a particular product made in June
Cost Object 3: The cost of operating the factory
With respect to these cost objects,the cost of the salary of the supervisor of the finishing department is directly traceable to cost objects:
A) 1 and 2.
B) 2 and 3.
C) 1 and 3.
D) 1, 2, and 3.

Question

Quizplus · Accepted Answer

The salary of the supervisor of the finishing department is directly traceable to the cost of operating the finishing department (Cost Object 1) and the cost of operating the factory (Cost Object 3). It is not directly traceable to the cost of a particular product made in June (Cost Object 2). Therefore, the best choice is C.

Southeast Manufacturing Company Has Identified the Following Cost Objects: Cost