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Which of the following would be classified as an indirect cost by a baking company? a.Salaries of bakers b.Frosting c.Flour d.Salaries of production supervisors

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The correct answer is D. Salaries of production supervisors

Step-by-step explanation:

Indirect costs differ from direct costs because these are not realted to the production of the product itself but to organizational or operational costs. In the case of a baking company, costs such flour, frosting, or the salaries of bakers are all direct costs because these are necessary to produce the sold goods including cookies, bread, donuts, etc. On the other hand, the salaries of production supervisors are indirect because these are not related to the production of the baked goods but are part of the operation of the company.

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