The wages paid to a mountain bike assembly worker are classified as __________ costs.
Understand the Problem
The question is asking for the classification of costs associated with wages paid to a mountain bike assembly worker. It seeks to identify a specific type of cost in accounting terms, likely focusing on fixed, variable, or direct costs.
Answer
Direct costs.
The final answer is direct costs.
Answer for screen readers
The final answer is direct costs.
More Information
Wages paid to assembly workers for building mountain bikes are considered direct costs because they are directly attributable to the production of the bikes.
Tips
A common mistake is to confuse direct costs with overhead costs. Direct costs are directly traceable to the production of goods, while overhead costs are not.
Sources
- 14.2: Cost Concepts Flashcards by Sami Huda | Brainscape - brainscape.com
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