Classify And Assign Costs Practice Test

A nonprofit organization operates three programs and must report costs by program for a grant. The executive director’s salary is $150,000 and the director spends approximately 50% of time on Program A, 30% on Program B, and 20% on Program C. How should the executive director’s salary be assigned for grant reporting purposes?

A manufacturing plant is classifying costs for a new product line of wooden stools. The wages of the production line workers can be traced to stools using time tickets, while the wages of the plant janitorial staff cannot be traced to any single product line. What is the correct classification of the janitorial staff wages?