Classify each of the following costs as a direct cost or an indirect cost assuming the cost object is the Produce Department (fruit and vegetable department) of a local grocery store.
a. Produce manager’s salary
b. Cost of the produce
c. Store utilities
d. Bags and twist ties provided to customers in the Produce Department for packaging fruits and vegetables
e. Depreciation expense on refrigerated produce display shelves
f. Cost of shopping carts and baskets
g. Wages of checkout clerks
h. Cost of grocery store’s advertisement flyer placed in the weekly newspaper
i. Store manager’s salary
j. Cost of equipment used to peel and core pineapples at the store
k. Free grocery delivery service provided to senior citizens
l. Depreciation on self-checkout machines

  • CreatedApril 30, 2015
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