The cost of land where a plant that manufactures common parts is set up falls under ________ costs.

Name: The cost of land where a plant that manufactures common parts is set up falls under ________ costs.
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Question

Quizplus · Accepted Answer

The cost of land is not a direct cost of manufacturing common parts, nor is it a variable cost that changes with production levels. Therefore, it would be considered a nontraceable common cost, which is a indirect cost that is common to multiple products or projects within a company.

The Cost of Land Where a Plant That Manufactures Common