Which of the following is an example of direct labor cost for a cell phone manufacturer? Oa. cost of oil lubricants for factory machinery Ob. salary of plant supervisor Oc. cost of wages of assembly worker Od. cost of phone components

Which of the following is an example of direct labor cost for a cell phone manufacturer? Oa. cost of oil lubricants for factory machinery Ob. salary of plant supervisor Oc. cost of wages of assembly worker Od. cost of phone components

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Which of the following is an example of direct labor cost for a cell phone manufacturer?
Oa. cost of oil lubricants for factory machinery
Ob. salary of plant supervisor
Oc. cost of wages of assembly worker
Od. cost of phone components

Expert Solution

Step 1 Introduction

Direct Labor Cost: It is the cost which can be specifically and consistently assigned to manufacturing a product.

In simple words, it is the cost which can be directly associated with manufacturing of product.

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