Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?
A) The cost of the hamburger patty in the burger the customer ordered.
B) The wages of the employee who takes the customer's order.
C) The cost of heating and lighting the kitchen.
D) The salary of the outlet's manager.

Question

Quizplus · Accepted Answer

The cost of the hamburger patty is a direct cost of serving a particular customer, as it is directly related to fulfilling that customer's order. Indirect costs are not directly tied to serving a specific customer, but rather to the overall operation of the outlet. Therefore, B, C, and D can be considered indirect costs.

Which One of the Following Costs Should NOT Be Considered