Question
10. A clothing manufacturer has the costs listed. Determine if each would be considered a direct or indirect cost if the cost object is an
10. A clothing manufacturer has the costs listed. Determine if each would be considered a direct or indirect cost if the cost object is an individual shirt.
a. Cost of fabric
b. Salary of clothing designer
c. Cost of buttons
11. During the production of its new broom, a manufacturer incurs each of the following costs. Would each cost be considered a direct or indirect cost if the cost object is an individual broom?
a. Electricity in production plant
b. Cost of plastic for handle
c. Cost of labor by production employees, billed at an hourly rate
12. Would each of the following costs be considered a direct or indirect cost for an individual lamp of a manufacturer?
a. Research and design on the materials used for the line of lamps
b. Cost of fabric for the lamp shade
c. Advertising expense for the line of lamps
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