Homework Answers
A manufacturing plant produces two product lines : golf equipment and soccer equipment. An example of indirect cost for the soccer equipment line is the Salary paid to plant supervisor.
Second option is the correct option.
| Material used to manufacture the soccer | It is a direct cost |
| Labor to shape the leather used to make the soccer ball | It is a direct cost |
| Material used to make the soccer balls | It is a direct cost |
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Option : 2nd one : salary paid to the plant suoervisor.
It is indirect cost as it is fixed and not proportional to the output of soccers.
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