Question

Production costs chargeable to the finishing department in June represent:

a) Overhead costs
b) Direct costs
c) Variable costs
d) Indirect costs

Answer 1

The production costs chargeable to the finishing department in June represent direct costs.

Step-by-step explanation:

The production costs chargeable to the finishing department in June represent direct costs.

Direct costs are those costs that can be easily traced to a specific product or department. In this case, the production costs incurred in the finishing department are directly related to the particular products being finished.

Examples of direct costs in the finishing department may include the cost of materials, labor, and any other expenses that are directly attributable to the production of finished goods.