Question

If factory janitors wages would be classified as when determine the cost of manufactured product

If factory janitors wages would be classified as when determine the cost of manufactured product

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Answer #1

factory janitors wages would be classified as INDIRECT COST when determine the cost of manufactured product because

Indirect cost is an expense (such as for security,advertising, maintenance, security, supervision,etc) incurred in joint usage and, are difficult to assign to a particular cost object or cost center (department,function, program).

Here ,Janitor wages occured in maintainance which are difficult to assign to a particular cost center.

Read more: http://www.businessdictionary.com/definition/indirect-cost.html

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