A Plant Manufactures Several Different Products

question 48

Multiple Choice

A plant manufactures several different products.The wages of the plant supervisor can be classified as a(n) ________.

• A) direct cost
• B) inventoriable cost
• C) variable cost
• D) period cost

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Definitions:

Manufacturing Costs

Expenses related to the production of goods, including direct materials, direct labor, and manufacturing overhead.

Product Costs

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.

ABC System

Activity-Based Costing (ABC) System is a method of allocating costs to products and services based on the activities that go into producing them.

Departmental Managers

Individuals responsible for overseeing specific departments within a company, focusing on performance, objectives, and management of departmental employees.