Asked by Fatihah Masri on May 03, 2024

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Because support department costs are directly related to production, they are applied to product costs as a part of direct labor.

Support Department Costs

Costs associated with the departments that do not directly engage in manufacturing but support those who do, such as IT, HR, and maintenance departments.

Direct Labor

Refers to the work done by employees who directly contribute to the production of goods or services, such as assembling a product or providing a service.

  • Differentiate between the direct and indirect expenses linked to support departments.
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MM
Mariam MagedMay 07, 2024
Final Answer :
False
Explanation :
Support department costs are considered indirect costs, not direct costs like direct labor, and are allocated to products through overhead allocation methods, not applied directly as part of direct labor.