Paula's Kennels is located in a small city in Nova Scotia. The company employs three pet attendants, four pet groomers, and two front office staff who book appointments and keep records. The Kennel 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 the total cost of the grooming product line, which of the following is an indirect cost?
A) Front office staff salaries
B) Labour cost of employees who groom pets
C) Cost of grooming supplies
D) Depreciation on grooming tables

Question

Quizplus · Accepted Answer

Front office staff salaries are considered an indirect cost to the grooming product line because these salaries are not directly traceable to the grooming services provided. They are more broadly associated with the overall operation of the kennel, including booking appointments and keeping records for all services, not just grooming.

Paula's Kennels Is Located in a Small City in Nova