If the cost object is the payroll department in a large manufacturing firm which of these would be a direct cost?
A) The raw materials cost of the products produced
B) A share of the building space occupied based on percentage of floor space used
C) the payroll department manager's yearly bonus payment
D) The salaries of the shop floor employees that are paid by the payroll department staff

Question

Quizplus · Accepted Answer

The payroll department manager's yearly bonus payment is a direct cost because it can be directly traced to the payroll department.

If the Cost Object Is the Payroll Department in a Large