Sturbridge Company Manufactures Fine Furniture and Grandfather Clocks

question 125

Multiple Choice

Sturbridge Company manufactures fine furniture and grandfather clocks.Sturbridge has an excellent reputation,and each grandfather clock sells for several thousand dollars.Which of the following is an indirect cost,assuming the cost object is the Clock Department?

• A) Salary of the clock production supervisor.
• B) Depreciation on the factory building.
• C) Depreciation on clock-making equipment.
• D) All of the answers are correct.

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Definitions:

Affordability

The degree to which something is financially viable or within one's financial means, often used in reference to budgeting and financial planning.

Legality

The state or condition of being in accordance with the law.

Employee Attraction

The strategies and efforts employed by organizations to appeal to potential employees and encourage them to apply for vacancies.

Reward Strategy

The design, implementation, and maintenance of a system that values and recognizes employees' contributions towards organizational goals, through both financial and non-financial rewards.