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How should you classify the cost associated with subcontracted snow removal services at your headquarters facility?What if the same costs were incurred at your factory?

How should you classify the cost associated with subcontracted snow removal services at your headquarters facility?What if the same costs were incurred at your factory?

  1. Headquarters: Indirect labor. Factory: Other overhead.
  2. Headquarters: Other overhead. Factory: Indirect labor.
  3. Headquarters: Product cost. Factory: Period cost.
  4. Headquarters: Period cost. Factory: Product cost.
  5. Headquarters: Direct labor. Factory: Direct labor.

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