Cherry Computers assembles computers from components supplied by various manufac

Question

Cherry Computers assembles computers from components supplied by various manufacturers. Listed below are some of the costs that are incurred by the company this year:

1)Insurance on the Assembly facility $3,000
2)Cost of Hard-drives installed in computers $50,000
3)Cost of advertising(aids in selling the product) $5000
4)Wages of employees who assembles the computers $100,000
5)Wages of shop supervisor $60,000
6)Depreciation on testing and Assembly equipment $4,000
7)Salary of the accountant who performs an administrative function $55,000


From the information given above, select the accounts that are best classified as "Indirect product costs for the year"

Please tell me the serial number of the selected accounts mentioned above

Explanation / Answer

"Indirect product costs for the year 1)Insurance on the Assembly facility $3,000 5)Wages of shop supervisor $60,000 7)Salary of the accountant who performs an administrative function $55,000 Indirect costs are those for activities or services that benefit more than one project. Their precise benefits to a specific project are often difficult or impossible to trace. For example, it may be difficult to determine precisely how the activities of the director of an organization benefit a specific project. Indirect costs do not vary substantially within certain production volumes or other indicators of activity, and so are considered to be fixed costs

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.