S2-4 Classify costs as direct or indirect (Learning Objective 3)

Classify each of the following costs as a direct cost or an indirect cost, assuming that the cost object is the Juniors Department (clothing and accessories for teenage and young women) in the Medina Kohl’s department store. (Kohl’s is a chain of department stores and has stores located across the U.S.)

a. Depreciation of the building

b. Cost of costume jewelry on the mannequins in the Juniors Department

c. Cost of bags used to package customer purchases at the main registers for the store

d. The Medina Kohl’s store manager’s salary

e. Cost of the security staff at the Medina store

f. Manager of Juniors Department g. Juniors Department sales clerks h. Cost of Juniors clothing i. Cost of hangers used to display the clothing in the store j. Electricity for the building k. Cost of radio advertising for the store l. Juniors clothing buyers’ salaries (these buyers buy for all the Juniors Departments of Kohl’s stores)