Question: Below are examples of cost objects for Apple Company. Explain why they are direct and indirect cost objects for each product. iPhone Direct cost: Components

Below are examples of cost objects for Apple Company. Explain why they are direct and indirect cost objects for each product.

iPhone

  • Direct cost: Components of the phone such as screen, battery, triple camera
  • Indirect cost: Salary of the supervisor of Apple's manufacturing utility

Macbook

  • Direct cost: Labor cost on producing the Macbook
  • Indirect cost: Quality control cost

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