Asked by Michael Sefick on May 28, 2024
Verified
The following cost data pertain to the operations of Ladwig Department Stores, Incorporated, for the month of December. 
The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?
A) $74,000
B) $32,000
C) $157,000
D) $86,000
Direct Costs
Costs that can be directly traced to producing specific goods or services, such as direct labor and direct materials.
- Detect and segregate costs as either direct or indirect within several contexts, like production and department financial tracking.
Verified Answer
SY
Sakshi YadavMay 28, 2024
Final Answer :
C
Explanation :
The costs that are NOT direct costs of the Brentwood Store are the Central Warehouse Costs ($77,000) and the Corporate Office Costs ($80,000), which total to $157,000.
Learning Objectives
- Detect and segregate costs as either direct or indirect within several contexts, like production and department financial tracking.