Asked by Jaida McNair on May 05, 2024
Verified
An accounting course is taught in two classes per week for one hour and fifty minutes each. The classes are held in a building with 36 classrooms that are used for a variety of courses. There are 15 other courses taught in the Accounting Department at this university. If the cost object is the accounting course, which of the following is a direct cost?
A) The course Instructor's salary for teaching the course (he only teaches this one course) .
B) The salary of the building's custodian.
C) The property taxes on the land and classroom building.
D) The Accounting Department's secretary salary.
Direct Cost
Expenses that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.
Instructor's Salary
The compensation, often periodic, given to a teacher or educator for their services.
Accounting Course
An educational class or program that teaches the principles, standards, and practices of accounting.
- Comprehend the principles of direct and indirect expenses.
- Distinguish between direct and indirect costs with respect to a given cost object.
Verified Answer
HT
Haley ThompsonMay 06, 2024
Final Answer :
A
Explanation :
The course Instructor's salary for teaching the accounting course is a direct cost because it is directly tied to the accounting course and would not be incurred if the course did not exist. The other options are indirect costs that are shared among multiple courses and departments, and are not specific to the accounting course.
Learning Objectives
- Comprehend the principles of direct and indirect expenses.
- Distinguish between direct and indirect costs with respect to a given cost object.