Asked by Shilpa Heald on Jul 16, 2024
Verified
Which of the following describes how support department costs are related to production?
A) They are a part of direct labor cost.
B) They are a part of direct materials cost.
C) They are a part of the both direct labor and direct materials costs.
D) They are indirectly related to production.
Indirectly Related
Refers to items or factors that have a secondary or less direct connection or relationship.
- Comprehend the function and financial treatment of support department expenses.
Verified Answer
HV
Hemangi VaghelaJul 17, 2024
Final Answer :
D
Explanation :
Support department costs are indirectly related to production because they are not directly involved in the manufacturing process but provide necessary services that facilitate production, such as maintenance, security, and administration.
Learning Objectives
- Comprehend the function and financial treatment of support department expenses.