Questions: Multiple Select Question Select all that apply Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.) Wages of assembly line worker Glass used in the frame Salary of production supervisor Oak wood used for frame

Multiple Select Question Select all that apply Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.) Wages of assembly line worker Glass used in the frame Salary of production supervisor Oak wood used for frame
Transcript text: Multiple Select Question Select all that apply Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.) Wages of assembly line worker Glass used in the frame Salary of production supervisor Oak wood used for frame Need help? Review these concept resources. Read About the Concept Rate your confidence to submit your answer. High Medium Low (1) Reading
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The direct costs for a company that manufactures picture frames are those costs that can be directly traced to the production of the frames. Let's evaluate each option:

  1. Wages of assembly line worker: This is a direct cost. The wages paid to workers who are directly involved in the assembly of picture frames can be directly traced to the production process.

  2. Glass used in the frame: This is a direct cost. The glass is a material that is directly used in the production of each picture frame, and its cost can be directly attributed to the manufacturing process.

  3. Salary of production supervisor: This is not a direct cost. The salary of a production supervisor is considered an indirect cost because it cannot be directly traced to the production of a specific product. It is typically classified as an overhead cost.

  4. Oak wood used for frame: This is a direct cost. Similar to the glass, the oak wood is a material that is directly used in the production of each picture frame, and its cost can be directly attributed to the manufacturing process.

Therefore, the direct costs are:

  • Wages of assembly line worker
  • Glass used in the frame
  • Oak wood used for frame
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