Paws Pet Resort and Spa is located in Christchurch. The company employs three pet attendants, four pet groomers and two front office staff who book appointments and keep records. The spa provides a range of services for dogs and cats including boarding, grooming, and obedience training. The grooming area includes a small retail section that carries dog and cat food, pet supplies, and toys. If the cost object is cost per day of boarding, which of the following is an indirect cost?
A) Pet food
B) Front office staff salaries
C) Cleaning costs for the kennels.
D) Maintenance on the kennels.

Question

Quizplus · Accepted Answer

Front office staff salaries are considered an indirect cost in relation to the cost per day of boarding because these costs are not directly traceable to the boarding of a specific pet. They are necessary for the overall operation but do not directly impact the cost of boarding an individual pet.

Paws Pet Resort and Spa Is Located in Christchurch