A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of indirect cost for the soccer equipment line is the ________.

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be directly attributed to a specific product, and property taxes on the manufacturing plant are an example of indirect costs for both the golf and soccer equipment lines. Option A is a direct cost for the soccer equipment line as it can be directly attributed to the production of soccer balls. Option B is a direct cost for the labor involved in the production of soccer balls. Option C is also a direct cost for the production of soccer studs.

A Manufacturing Plant Produces Two Product Lines: Golf Equipment and Soccer