Standard costs take into consideration all of the following except:
A)The cost of materials utilized to maintain production equipment
B)The cost of labor used to operate the production machinery
C)The cost of the sales manager's salary
D)Factory overhead items that cannot be directly correlated to product production

Question

Quizplus · Accepted Answer

Standard costs only take into consideration the costs that are directly related to production, such as materials and labor, and factory overhead that can be directly correlated to product production. The sales manager's salary is an indirect cost and is not part of the standard cost calculation.

Standard Costs Take into Consideration All of the Following Except