The salary paid to the maintenance supervisor in a manufacturing plant is an example of:

Question

Quizplus · Accepted Answer

The salary paid to the maintenance supervisor is an example of a fixed cost, which is a type of indirect cost. Fixed costs do not vary with changes in the level of activity or output, and are incurred regardless of whether a company is producing goods or services. Therefore, Option C "Indirect Fixed Cost" is the best choice. Option A "Direct Variable Cost" is not applicable since the maintenance supervisor's salary is not directly related to the amount of goods produced. Option B "Direct Fixed Cost" is not applicable since the maintenance supervisor's salary is not directly tied to a specific product or service. Option D "Indirect Variable Cost" is not applicable since the maintenance supervisor's salary does not vary with changes in the level of activity or output.

The Salary Paid to the Maintenance Supervisor in a Manufacturing