Costs Identified as Indirect Labor Should Be Charged to ________

question 111

Multiple Choice

Costs identified as indirect labor should be charged to ________.

• A) manufacturing overhead
• B) direct labor on the job cost record
• C) ignored since they are not relevant
• D) salaries payable

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Definitions:

Property Taxes

Taxes assessed on real estate by local government, based on the assessed value of the property.

Mixed Cost

An expense that contains both variable and fixed cost components, changing in total with the level of activity but also containing a constant element.

Straight-Line Depreciation

A method used in accounting to allocate the cost of a tangible asset over its useful life evenly.

Electricity Costs

The financial charges for the consumption of electrical energy by a business, forming part of its operating expenses.