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ACC349 Phoenix Cost Accounting Chapter 2 Quiz Help

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1. Which one of the following costs would not be considered an indirect cost of serving a particular customer at a delicatessen? a. b. c. d. The salary of the manager The cost of the tables and chairs used to furnish the restaurant The cost of the bread used to make the sub sandwich that is ordered The cost of lighting and heating the restaurant Feedback: In this situation, the costs listed must be identified as either direct or indirect. A direct cost is a cost that can be easily and conveniently traced to the particular cost object under consideration (that is the cost of serving a customer at a delicatessen). Indirect costs cannot be physically traced to the creation of products or can be traced only at great cost and inconvenience. (This question asks you to identify the cost that would not be considered an indirect cost; in other words, you must identify the direct cost that is listed to correctly answer the question.) The cost of the franchise manager (answer A), the cost of the tables and chairs (answer B) and the cost of the lighting and heating (answer D) would all be considered indirect costs. On the other hand, the cost of the bread used (C, the correct answer) could ...
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