The salary of a production supervisor is best classified as g) two of the choices a and f are correct.
To explain, a production supervisor’s salary is related to the manufacturing process and overseeing production activities. Therefore, it can be considered:
- a) a manufacturing overhead cost – This is because the salary is not directly tied to the production of a specific product, but is necessary for the overall production environment.
- f) a prime cost – In some contexts, it can also be seen as a prime cost, particularly when examining costs in relation to labor directly involved in the production process.
So, while it can be identified as manufacturing overhead, it also plays a role in the broader category of prime costs, leading us to conclude that options a and f are both correct classifications for the salary of a production supervisor.