Simon operates a kitchen manufacturing business.Which cost would not be classed as a direct cost of building a kitchen for a client?
A)fittings for the kitchen cabinets
B)wages of tradesmen
C)depreciation of tools and equipment
D)timber for the kitchen cabinets

Question

Quizplus · Accepted Answer

Depreciation of tools and equipment is an indirect cost, as it is not directly tied to the production of a specific kitchen but rather the overall operation of the business. Fittings, timber, and wages of tradesmen are all direct costs as they are specifically used in the production of a specific kitchen.

Simon Operates a Kitchen Manufacturing Business