Indirect manufacturing costs such as rent, factory supervisor salary, and depreciation on production equipment are always costs of the period in which they are
incurred and are not associated with inventories.

Question

Quizplus · Accepted Answer

When indirect costs are incurred in marketing or in corporate headquarters, they are period costs. However, when these costs are incurred in manufacturing, they are manufacturing overhead costs and are inventoriable.

Indirect Manufacturing Costs Such as Rent, Factory Supervisor Salary, and Depreciation