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Crunchy Chips is a potato chip manufacturer. To produce the chips, Crunchy Chips needs to first peel and slice the potatoes and then fry them within two minutes of slicing to prevent browning. If Crunchy Chips is unable to fry the potatoes within two minutes, it must freeze the chips and later defrost them to fry them. Which of the following is true for Crunchy Chips?
Factory Overhead Costs
Expenses related to operating a factory that cannot be directly traced to specific units produced, such as electricity, maintenance, and rent of the factory space.
Direct Labor Costs
Costs that are directly associated with the production of goods or services, typically wages paid to workers directly involved in manufacturing or production.
Indirect Cost
Expenses that are not directly attributable to a specific cost object, such as overhead costs.
Plant Manager's Salary
A fixed cost not directly tied to the level of production or sales, representing the compensation of the individual overseeing the operations of a manufacturing facility.
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