Pets 'n Pals is attempting to determine the cost of operating a particular store.Which of the following costs would be classified as an indirect cost?
A) Fees paid to external accountant for corporate audit
B) Cost of operating company-owned vehicles by the store
C) Salary of store manager
D) Cost of aquariums used to display exotic fish

Question

Quizplus · Accepted Answer

Indirect costs are those that cannot be directly traced to a specific product, service or department. Fees paid to an external accountant for a corporate audit is an indirect cost as it is not directly related to the operation of the store, but rather the overall financial management of the company.

Pets 'N Pals Is Attempting to Determine the Cost of Operating