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1. (4 marks) John is thinking to start garden department in his hardware store. He is concerned about the prices of the garden department. He
1. (4 marks) John is thinking to start garden department in his hardware store. He is concerned about the prices of the garden department. He has identified the following costs. Classify each as a direct cost or as an indirect cost and briefly explain your reasoning:
Cost
Direct
Or
Indirect
Reasoning
Garden Managers salary
Wages of checkout clerks
Cost of merchandise
Store utilities
1. (4 marks) John is thinking to start garden department in his hardware store. He is concerned about the prices of the garden department. He has identified the following costs. Classify each as a direct cost or as an indirect cost and briefly explain your reasoning:
Cost | Direct Or Indirect | Reasoning |
Garden Managers salary |
|
|
Wages of checkout clerks |
|
|
Cost of merchandise |
|
|
Store utilities |
|
|
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