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27 January, 17:57

Consider the production department of a manufacturer of laptop computers. Classify the cost of the factory maintenance manager's salary.-Indirect-Product-Fixed

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  1. 27 January, 18:06
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    Indirect, product, fixed

    Explanation:

    The salary of the maintenance manager is an indirect cost as it does not directly tackle the transformation of raw materials in the final product. Yes, their work does improve overall productivity, but it isn't direct.

    Also, this cost is a product cost. Although it is indirect, it is a manufacturing overhead, and by U. S. accounting standards, it goes into product cost.

    Lastly, it is fixed, as salaries related to equipment maintenance are not related to resources that are used just occasionally like temporary working force.
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