An example of a direct cost for a service provided by an accounting firm,such as a tax return,would be:
A)depreciation on computer system.
B)labor of staff accountant who prepared the return.
C)labor of file clerk who filed copies of return.
D)rent on the office.

Question

Quizplus · Accepted Answer

Direct costs for a service provided by an accounting firm, such as a tax return, are costs that can be directly traced to the service. The labor of the staff accountant who prepared the return is a direct cost because it is directly related to the provision of the service. Depreciation on computer system, rent on the office, and the labor of a file clerk who filed copies of the return are indirect costs that cannot be directly traced to the tax return service.

An Example of a Direct Cost for a Service Provided