Question

The cost of the employee who computes total manufacturing costs would be considered:

a)Manufacturing overhead.

b)Administrative costs.

c)Direct labor.

d)Indirect labor.

Answer 1

The correct answer is letter "B": Administrative costs.

Step-by-step explanation:

Administrative costs are those expenses incurred in a company and do not belong to the production or regular operations of the business. These are costs at the corporate level such as the salaries of senior executives or general services such as accounting, and contracting.