Question

Consider the production department of a manufacturer of laptop computers. Classify the cost of the factory maintenance manager's salary.

a. Period
b. Variable
c. Indirect
d. Fixed
e. Direct
f. Product

Answer 1

Answer:

c. Indirect

d. Fixed

f. Product

Explanation:

Cost of the factory maintenance manager's salary is a manufacturing cost. However, this manufacturing cost is an Indirect and fixed cost. Manufacturing costs are Product costs whereas Non-Manufacturing costs are Period Costs