Which of the following manufacturing costs is an indirect cost of producing a product?

A) oil lubricants used for factory machinery
B) commissions for sales personnel
C) hourly wages of an assembly worker
D) memory chips for a microcomputer manufacturer

Indirect Cost

Indirect costs are expenses not directly tied to the production of goods or services, such as overhead costs including utilities, rent, and administrative salaries.

Oil Lubricants

Substances used to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.

Factory Machinery

Tools and equipment designed for use in the manufacturing process within a factory to produce goods and products.