Which of the following may be considered indirect costs included in inventory?
A. |
Repairs related to machinery |
|
B. |
Salaries and benefits of accountants and attorneys |
|
C. |
Depreciation on manufacturing facilities |
|
D. |
Salaries and benefits of supervisory workers |
|
E. |
Direct labor |
|
F. |
Quality control |
|
G. |
Utility costs related to manufacturing |
|
H. |
Direct materials |
Out of the following following will be included in indirect cost of machinery :-
1. Repairs related to machinery.
2. Salaries and benefits to accountants and attorney
3. Depreciation on manufacturing facilities
4. Salaries and benefits to supervisory workersa
5. Quality control
6. Utility related to production
This is because their costs will not vary witht the units of inventory produced. For example salaries are fixed they will not vary with units of inventory.
Direct labour and direct materials are direct costs.
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