Which of the following will least likely be classified as a direct cost of a business segment?
A)Shipping
B)Sales commissions
C)Rent
D)Direct material

Question

Quizplus · Accepted Answer

Rent is typically considered an indirect cost as it is not directly tied to the production or sale of a particular product or service. The other options (shipping, sales commissions, direct material) are all directly tied to the business segment's activities and are therefore typically classified as direct costs.

Which of the Following Will Least Likely Be Classified as a Direct