Which of the following manufacturing cost is an indirect cost?

Indirect manufacturing costs are production costs that cannot be directly associated with a produced unit. Examples of these costs are supplies, depreciation, utilities, production supervisory wages, and machine maintenance.

What are examples of indirect cost?

Indirect costs include costs which are frequently referred to as overhead expenses (for example, rent and utilities) and general and administrative expenses (for example, officers’ salaries, accounting department costs and personnel department costs).

Which of the following costs is included in the cost of a manufactured product?

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost. Period costs include direct materials and direct labor.

Which of the following is an example of a manufacturing overhead cost?

Examples of manufacturing overhead costs are: Rent of the production building. Property taxes and insurance on manufacturing facilities and equipment. Communication systems and computers for a manufacturing facility.

What is direct and indirect manufacturing?

Direct costs of a manufacturing firm are typically direct materials and direct labor. Indirect manufacturing costs are sometimes called manufacturing overhead. Examples of these costs include utilities, rent, and machinery maintenance. Certain labor can also be indirect, like secretaries and maintenance workers.

What are indirect COGS?

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.

How are indirect costs allocated?

You can allocate indirect costs by taking your total indirect expenses and dividing them by some sort of allocation measure, like direct labor expenses, direct machine costs, or direct material costs. In this example, your indirect rate is 2:1, meaning you spend $2 of overhead per $1 of direct labor expenses.

What costs are considered direct indirect?

Examples of direct costs are direct labor, direct materials, commissions, piece rate wages, and manufacturing supplies. Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.

Which of the following is the flow of manufacturing costs?

The correct flow of manufacturing costs is: a) Raw materials, work in process, finished goods, cost of goods sold.

Which of the following is an example of an Inventoriable cost when manufacturing products?

Inventoriable costs are included in the cost of a product. For a manufacturer, these costs include direct materials, direct labor, freight in, and manufacturing overhead.

Is indirect materials manufacturing overhead?

Indirect materials can be accounted for in one of two ways: They are included in manufacturing overhead, and are allocated to the cost of goods sold and ending inventory at the end of each reporting period based on some reasonable method of allocation. They are charged to expense as incurred.

Is indirect Labour a manufacturing overhead?

Also known as production overhead, factory overhead, or factory burden, manufacturing overhead refers to all of the indirect costs required to operate your factory. These might include: Indirect labor, such as maintenance and cleaning personnel.