Use the information below to answer the following questions.
Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are:
(i) hairdressers' salaries
(ii) shampoo and conditioner (no individual records kept of usage)
(iii) colour and perm solutions (individual records kept of usage per client)
(iv) electricity and gas
(v) depreciation of equipment
-Refer to the information above. The indirect costs incurred in providing a haircut only to a client would be:

Question

Quizplus · Accepted Answer

Indirect costs are those costs that are not directly traceable to a specific service. In the context of providing a haircut, hairdressers' salaries and the cost of colour and perm solutions can be directly associated with servicing clients. However, shampoo and conditioner (since no individual records are kept), electricity and gas, and depreciation of equipment are costs that support the overall operation and cannot be directly attributed to a single client's haircut, making them indirect costs.

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