Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.
-Lubricants used on the bar stool manufacturing equipment
A)Direct
B)Indirect

Question

Quizplus · Accepted Answer

Lubricants used on the manufacturing equipment would be considered an indirect cost, as they are not directly traced to the bar stools being produced but rather to the manufacturing process as a whole.

Bartel Corporation Produces Bar Stools for Restaurants