Which of the following is not a direct cost for a scooter manufacturer?
A)Office rent.
B)Wheels.
C)Handle bars.
D)Brakes.
E)Grip tape.

Question

Quizplus · Accepted Answer

Office rent is an indirect cost as it cannot be directly traced to the production of scooters. Direct costs are those that can be easily traced and assigned to a specific product or service. Wheels, handle bars, brakes, and grip tape are all direct costs as they are essential components of a scooter.

Which of the Following Is Not a Direct Cost for a Scooter