The following is a list of costs for a car manufacturer. Classify each of the following costs as: a. Direct or indirect with respect to one unit (car) produced; b. Direct materials (DM), direct labor (DL), manufacturing overhead (MOH), selling (S), or administrative (A) Cost Steel used in cars CEO's salary Cost of shipping cars to customers Factory manager's salary Direct or Indirect DM, DL, MOH, S, or A
The following is a list of costs for a car manufacturer. Classify each of the following costs as: a. Direct or indirect with respect to one unit (car) produced; b. Direct materials (DM), direct labor (DL), manufacturing overhead (MOH), selling (S), or administrative (A) Cost Steel used in cars CEO's salary Cost of shipping cars to customers Factory manager's salary Direct or Indirect DM, DL, MOH, S, or A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The following is a list of costs for a car manufacturer. Classify each of the
following costs as:
a. Direct or indirect with respect to one unit (car) produced;
b. Direct materials (DM), direct labor (DL), manufacturing overhead (MOH),
selling (S), or administrative (A)
Cost
Steel used in cars
CEO's salary
Cost of shipping cars to customers
Factory manager's salary
Direct or
Indirect
DM, DL, MOH,
S, or A
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