For a manufacturer of kitchens, which of the following would you expect to be a direct cost?
A) Hourly labour cost of employees installing kitchens
B) Material for kitchen benchtops
C) Hourly labour cost of employees installing kitchens AND material for kitchen benchtops
D) Rent of factory premises

Question

Quizplus · Accepted Answer

Direct costs are those that can be directly attributed to the production of a specific product or service. In this case, both the hourly labor costs of employees installing kitchens and the material for kitchen benchtops are direct costs, as they can be directly associated with the manufacturing of kitchens. Rent of factory premises is considered an indirect cost because it does not directly tie to the production of a specific kitchen.

For a Manufacturer of Kitchens, Which of the Following Would