Which of the following would not be considered a direct cost with respect to the service department of a new car dealership?
A) Wages of repair technicians.
B) Property taxes paid by the dealership.
C) Repair parts consumed.
D) Salary of the department manager.
E) Depreciation on new equipment used to analyze engine problems.

Question

Quizplus · Accepted Answer

Property taxes paid by the dealership are considered an indirect cost because they are not directly traceable to the service department's operations. They are a general overhead expense for the entire dealership.

Which of the Following Would Not Be Considered a Direct