Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?
A)The cost of the hard disk drive installed in the computer.
B)The cost of shipping the computer to the customer.
C)The cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.
D)The cost of packaging the computer for shipment.

Question

Quizplus · Accepted Answer

The cost of leasing a machine to test hard disk drives is not a direct cost of serving a particular customer who orders a customized personal computer. It is an indirect cost that is incurred to ensure the quality of the product being sold. The other three costs (the hard disk drive itself, shipping, and packaging) are all direct costs that are directly attributable to serving the customer's order.

Which One of the Following Costs Should NOT Be Considered