Paula's Kennels is located in a small city in Nova Scotia. The company employs three pet attendants, four pet groomers, and two front office staff who book appointments and keep records. The Kennel 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 cost per day of boarding, which of the following is a direct cost?
A) Pet food
B) Front office staff salaries
C) Grooming supplies
D) Depreciation on shelving and equipment used in the grooming and retail area

Question

Quizplus · Accepted Answer

Pet food is a direct cost because it is directly related to the cost per day of boarding as it is an expense incurred for the care and feeding of the pets while they are being boarded.

Paula's Kennels Is Located in a Small City in Nova