Match the costs that follow to the type of product cost (a-c)or designate as not a product cost (d).
-machine operator
A)direct labor
B)direct materials
C)factory overhead
D)not a product cost

Question

Quizplus · Accepted Answer

A machine operator is a type of direct labor since they are directly involved in the production process of a product.

Answer: D 
 The cost of the machine operator is not a product cost if the operator is not directly involved in the production process, such as an administrative employee who is not involved in the manufacturing of products.

Note: B and C are not appropriate choices for the cost of a machine operator, as direct materials refer to the raw materials used to make a product, and factory overhead refers to the indirect costs associated with manufacturing, such as rent and utilities for the factory.

Match the Costs That Follow to the Type of Product