Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?
A) the cost of the hamburger patty in the burger they ordered.
B) the wages of the employee who takes the customer's order.
C) the cost of heating and lighting the kitchen.
D) the salary of the outlet's manager.

Question

Quizplus · Accepted Answer

The cost of the hamburger patty is a direct cost of serving the customer, as it is directly related to the production of the burger that the customer ordered. Indirect costs are those that are necessary for the overall operation of the restaurant, but not directly related to serving a particular customer. B, C, and D are all indirect costs. The employee's wages are necessary regardless of whether or not a specific customer places an order, heating and lighting the kitchen is required for all food preparation, and the manager's salary is an overhead cost of running the entire outlet.

Which One of the Following Costs Should NOT Be Considered