Which of the following is a direct 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 rent on the factory where the table is manufactured.
C)The salary of the supervisor who oversees all production for the firm.
D)Depreciation on the tools used to manufacture the table.

Question

Quizplus · Accepted Answer

The cost of the wood in the table is a direct cost because it is specifically related to the manufacturing of the table. Rent on the factory (B) is an indirect cost because it is not directly related to the production of the table but rather to the overall operation of the factory. The salary of the supervisor (C) is an indirect cost because it is not specific to the manufacturing of the table but rather to the supervision of all production. Depreciation on tools (D) is also an indirect cost because it is not specific to the production of the table but rather to the overall operation of the factory.

Which of the Following Is a Direct Cost of Manufacturing