An accounting course is taught in two classes per week for one hour and fifty minutes each. The classes are held in a building with 36 classrooms that are used for a variety of courses. There are 15 other courses taught in the Accounting Department at this university. If the cost object is the accounting course, which of the following is a direct cost?
A)The course Instructor's salary for teaching the course (he only teaches this one course).
B)The salary of the building's custodian.
C)The property taxes on the land and classroom building.
D)The Accounting Department's secretary salary.

Question

Quizplus · Accepted Answer

The course Instructor's salary for teaching the accounting course is a direct cost because it is directly tied to the accounting course and would not be incurred if the course did not exist. The other options are indirect costs that are shared among multiple courses and departments, and are not specific to the accounting course.

An Accounting Course Is Taught in Two Classes Per Week