Question

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

a) the wages paid to assembly-line production workers.
b) the tires for buses
c) the windshields for buses
d) the depreciation on factory building

Answer 1

The depreciation on the factory building is not directly attributable to the finished product of a bus manufacturer because it is an indirect cost.

Step-by-step explanation:

The cost incurred by a bus manufacturer that would NOT be directly attributable to the finished product is d) the depreciation on the factory building. This is because depreciation of the factory building is considered an indirect cost. It is spread out over all the units produced and not directly tied to any single bus. In contrast, the wages paid to assembly-line production workers (a), the tires (b), and the windshields (c) for buses are direct costs as they can be directly attributed to the production of a specific bus.