Examlex
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?
Administrative Expense
Costs related to the general operation of a business that are not directly tied to production, including salaries of non-production staff, office supplies, and utilities.
Indirect Material Cost
Indirect material costs are costs related to materials that do not directly become part of the final product but are necessary for the manufacturing process.
Direct Material Cost
The expense of basic materials and parts directly utilized in manufacturing a product.
Period Cost
Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.
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