How can a department manager's salary be characterized?
A)direct cost of the department,but indirect to the units the department produces.
B)process cost of the department,but indirect to the units the department produces.
C)indirect cost of the department,but direct to the units the department produces.
D)variable cost of the department,but direct to the units the department produces.

Question

Quizplus · Accepted Answer

A department manager's salary is a direct cost of the department because it is directly associated with the operation of that department. However, it is considered an indirect cost to the units produced because it does not directly correlate with the production of individual units; the salary is paid regardless of the number of units produced.

How Can a Department Manager's Salary Be Characterized