Paws Pet Resort and Spa is located in Christchurch. The company employs three pet attendants, four pet groomers and two front office staff who book appointments and keep records. The spa provides a range of services for dogs and cats including boarding, grooming, and obedience training. The grooming area includes a small retail section that carries dog and cat food, pet supplies, and toys. If the cost object is the total cost of the grooming product line, which of the following is a direct cost?
A) Front office staff salaries
B) Labour cost of employees who groom pets
C) Public liability insurance.
D) Rent on the premises.

Question

Quizplus · Accepted Answer

The labor cost of employees who groom pets is a direct cost to the grooming product line because it can be directly traced to that specific service.

Paws Pet Resort and Spa Is Located in Christchurch