Which one of the following examples could be classified as a direct cost?
A)The costs of an entire factory's electricity related to a product; the product line is the cost object.
B)The printing costs incurred for payroll cheque processing; the payroll cheque processing is the cost object.
C)The salary of a maintenance supervisor in the manufacturing plant; Product A is the cost object.
D)The costs incurred for electricity in the office; the accounting office is the cost object.
E)The cost of advertising the products.

Question

Quizplus · Accepted Answer

Direct costs are those that can be easily and specifically traced to a particular cost object, such as a product or service. In this case, the printing costs incurred for payroll cheque processing can be directly traced to the payroll cheque processing, which is the cost object.

Which One of the Following Examples Could Be Classified as a Direct