Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?
A)the wood and upholstery materials that are in the final piece
B)the labour of the worker assembling the piece of furniture
C)the depreciation paid on factory equipment
D)the labour of the woodworker who finishes the wood of the piece

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense and cannot be directly traced to a specific piece of furniture based on physical observation. It is an indirect cost that is spread out over the useful life of the factory equipment.

Which of the Following Would NOT Be a Cost That