GDS Seating Inc. makes seats for football, basketball, and soccer stadiums throughout the world. Which of the following is an example of an indirect cost for this manufacturer?
A) order fulfillment costs on the company's retractable seating systems
B) commission to a salesperson who has sold 10,000 platform seats
C) company-wide participation in a trade show
D) direct-mail advertising to promote its chairs with the "gravity fold" seats
E) ad in trade journal called Athletic Business to announce an award the company won for a ergonomically-designed chair it built

Question

Quizplus · Accepted Answer

Company-wide participation in a trade show is an example of an indirect cost because it is not directly attributable to the production of a specific product or service but is necessary for the overall operation of the company.