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 direct costs incurred in providing a perm to a client would be:
A)all costs mentioned above.
B)hairdresser salary, shampoo, and conditioner.
C)hairdresser salary, colour and perm solution.
D)hairdresser salary.

Question

Quizplus · Accepted Answer

The direct costs incurred in providing a perm to a client would only include the hairdresser salary and the cost of the colour and perm solution as they are specifically used for that service. Shampoo and conditioner are indirect costs that are used for multiple services and not specific to the perm service. Electricity and gas and depreciation of equipment are overhead costs that are not directly related to providing the perm service.

Use the Information Below to Answer the Following Questions