Overhead Cost Includes Supervisors' Salaries

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Question:

Which element of cost includes the cost of factory supervisors and managers? Question 7Answer a. Direct labor cost b. Direct material cost c. Overhead cost d. Administrative cost

Answer:

The element of cost that includes the cost of factory supervisors and managers is:

c. Overhead cost

Overhead costs encompass indirect costs associated with manufacturing, including salaries of supervisors and managers, utilities, and other expenses that are not directly tied to the production of goods.