Which of the following costs is an indirect product cost?
A) president's salary
B) wages of assembly workers
C) materials used
D) property taxes on plant facilities

Question

Quizplus · Accepted Answer

Indirect product costs are costs that cannot be easily traced to a specific product, but are necessary for the production process. Property taxes on plant facilities are an example of an indirect product cost. The president's salary is an example of an indirect period cost, as it is not related to the production process. Wages of assembly workers and materials used are examples of direct product costs, as they can be easily traced to a specific product.

Which of the Following Costs Is an Indirect Product Cost