In: Accounting
Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?
Group of answer choices
direct labor
salary of a factory supervisor
units-of-production depreciation on factory equipment
direct materials
Answer is Salary of a factory supervisor.
Direct labor is varies with production as they directly worked on production.
Direct material consumes with respect to production.
Productions units to be considered for allocation of depreciation under units-of-production method. So, it is also varies with production.
But salary of a factory supervisor won't vary with production as his salary is fixed per month.