ACCA MA · Chapter 3 · Question 9 of 10
In a manufacturing company, how should the salary of the factory canteen manager be classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Production overhead
Explanation
The factory canteen supports production workers, but the manager's salary cannot be traced to specific products. It is therefore an indirect production cost (production overhead). It is not direct labour because the manager does not work on the product itself.
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