Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?
A) The cost of the wood in the table.
B) The cost of the labor used to assemble the table.
C) The cost of the glass in the table.
D) The cost of rent on the factory where the table is manufactureD.
Costs that cannot be traced to a specific cost object, or that are not worth the effort of tracing, are indirect costs, such as the cost of rent on the factory.

Question

Quizplus · Accepted Answer

Rent on the factory is an indirect cost because it cannot be directly attributed to the table made of wood and glass, and it is not worth the effort of tracing the cost to the specific product.

Which of the Following Is an Indirect Cost of Manufacturing