Answered: Which of the following is a direct cost…

Which of the following is a direct cost with respect to producing a motor car? a. Salary of production supervisor b. Plant utilities c. Cost of car engine d. Depreciation of plant & equipment

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3MC: Which of the following is a prime cost? A. indirect materials B. direct labor C. administrative...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Which of the following is a direct cost with respect to producing a motor car?

a. Salary of production supervisor

b. Plant utilities

c. Cost of car engine

d. Depreciation of plant & equipment

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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