Use the information below to answer the following questions.
Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are:
i)Hairdressers' salaries
ii)Shampoo and Conditioner
(no individual records kept of usage)
iii)Colour and Perm Solutions
(individual records kept of usage per client)
iv)Electricity and Gas
v)Depreciation of equipment
-Refer to the information above. The indirect costs incurred in providing a haircut only to a client would be:
A)all costs mentioned above.
B)shampoo and conditioner, electricity and gas.
C)electricity and gas and depreciation of equipment.
D)shampoo and conditioner, electricity and gas, and depreciation of equipment.

Question

Quizplus · Accepted Answer

The indirect costs incurred in providing a haircut only to a client would be shampoo and conditioner (as no individual records are kept of usage), electricity and gas (as they are used to power the salon as a whole, not just for one client), and depreciation of equipment (as the equipment is used for all clients, not just one). Colour and perm solutions are not indirect costs for a simple haircut, as they are only used if a client specifically requests those services. Hairdressers' salaries are direct costs, as they are paid specifically for the service provided to the client.

Use the Information Below to Answer the Following Questions