Managers allocate the salaries of human resource personnel to a producing department.The salaries are considered to be a(n)________ for the producing department and a(n)________ for the human resource department.
A) direct cost; indirect cost
B) indirect cost; direct cost
C) indirect cost; indirect cost
D) traceable cost; common cost

Question

Quizplus · Accepted Answer

Salaries of human resource personnel are an indirect cost to the producing department because they are not directly tied to the production process, but are necessary for the department to function. On the other hand, these salaries are a direct cost for the human resource department because they are directly tied to the department's functioning.

Managers Allocate the Salaries of Human Resource Personnel to a Producing