Craig Manufacturing Company Operates Its Three Production Departments Within a Single

question 126

Multiple Choice

Craig Manufacturing Company operates its three production departments within a single facility.Each department produces its own products and maintains its own production equipment.Although they share a common facility,each department is overseen by a separate supervisor.Which one of the following costs is a direct cost of each department?

• A) Lease payment on facility
• B) Depreciation on the facility
• C) Production supervisor salary
• D) Plant manager salary