If the cost object is the production 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) Research and development costs for future products.

Question

Quizplus · Accepted Answer

The raw materials cost of the products produced is a direct cost to the production department because it is directly traceable to the products being manufactured in that department.

If the Cost Object Is the Production Department in a Large