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 perm to a client would be:

Question

Quizplus · Accepted Answer

The direct costs incurred in providing a perm to a client would be the colour and perm solution, which are specifically used for that service and have individual records kept of usage per client. The indirect costs would be the costs that are incurred in the overall operation of providing the service, such as the costs of shampoo and conditioner (which are used for various services and do not have individual records kept of usage), the costs of electricity and gas (which are necessary for providing any service), and the costs of depreciation on equipment (which is necessary for providing any service and is spread out over time). Therefore, the best answer is C).

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