Brittany operates a small chain of five children’s shoe stores called Baby Feet. She employs a store manager and two sales clerks for each store. In addition, she rents office space which houses her office, the personnel department, and the bookkeeping department for the chain. Brittany has collected the following information regarding the stores and has asked you to determine which costs are direct and which are indirect costs.

Required: For each of the following items, indicate which would describe a direct cost (D)

for the store at the corner of Elm Street and Main and which would describe an indirect cost (I) for an individual store.

Transcribed Image Text:

1. _ Rent for the office space 1234567 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Rent for the store Brittany's salary The store manager's salary The company personnel manager's salary Bookkeeper's salary Maintenance cost for the store Depreciation on sales equipment Depreciation on bookkeeping computer Sales clerks' salaries Cost of shoes Advertising cost for the chain