Asked by george brown on May 04, 2024
Verified
Utilities on factory building
A) Direct costs
B) Indirect costs
C) Neither direct nor indirect costs
Factory Building Utilities
Expenses related to utilities within a factory building, including costs for electricity, gas, water, and sewage.
Direct Costs
Costs directly associated with the manufacturing of specific products or services, including labor and raw materials.
Indirect Costs
Expenses not directly tied to a specific project, product, or activity, such as administrative salaries and facility maintenance.
- Comprehend and categorize costs into direct or indirect expenses.
- Gain insight into the effect of costs on manufacturing and non-manufacturing contexts.
Verified Answer
FB
Fatima BashirMay 09, 2024
Final Answer :
B
Explanation :
Utilities on a factory building are considered indirect costs because they cannot be directly traced to a specific product but are necessary for the production process.
Learning Objectives
- Comprehend and categorize costs into direct or indirect expenses.
- Gain insight into the effect of costs on manufacturing and non-manufacturing contexts.