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Managerial Accounting

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Cost Clarification for Lawnmowers

MGRACT-T2EZKE

Jefferson Industries manufactures lawnmowers for sale to retailers. The assembly department only tracks costs that are directly traceable to the lawnmower.

Which of the following items would be classified as an indirect cost?

A

Clerical Staff Costs

B

Sub-assembly Motor Parts

C

Assembly Labor

D

Lawnmower Materials