Nature's Soap manufactures Bar soap and Liquid soap.Of the following costs,which would be an indirect cost to the Liquid Department?
A) Liquid manager's salary
B) Manufacturing plant insurance
C) Depreciation of the liquefying equipment
D) Liquid Fragrance

Question

Quizplus · Accepted Answer

Manufacturing plant insurance is an indirect cost to the Liquid Department because it is a cost that benefits both the Bar soap and Liquid soap departments and cannot be directly traced to the production of Liquid soap alone.

Nature's Soap Manufactures Bar Soap and Liquid Soap