If the Ford Focus is the cost object, classify each of the following costs as indirect or direct, respectively: property taxes for the manufacturing plant, engines for the cars, and janitor wages for the factory.
A)indirect, direct, and indirect
B)all are indirect
C)all are direct
D)indirect, direct, and direct

Question

Quizplus · Accepted Answer

Property taxes for the manufacturing plant and janitor wages for the factory are indirect costs because they cannot be directly traced to the production of a specific Ford Focus. The engine for the cars is a direct cost because it can be directly traced to a specific vehicle.

If the Ford Focus Is the Cost Object, Classify Each