When estimating the costs of a manufacturing supplier:
A) prices of raw materials are not commonly accessible.
B) equipment depreciation is typically the largest single cost element in overhead.
C) material costs are difficult to estimate.
D) direct labor costs are the easiest costs to estimate.
E) labor rates are typically uniform across different plant locations.

Question

Quizplus · Accepted Answer

Equipment depreciation is often a significant cost in manufacturing overhead, as it accounts for the wear and tear on machinery over time.

When Estimating the Costs of a Manufacturing Supplier