The costs of the two service departments, maintenance and quality control, that provide support for the production departments are classed as:

Question

Quizplus · Accepted Answer

The costs of the maintenance and quality control service departments are considered indirect, as they do not directly contribute to the production of goods. These types of costs are typically included in factory overhead, along with other indirect costs such as rent, utilities, and depreciation.

The Costs of the Two Service Departments, Maintenance and Quality