Question

If the Ford Focus is the cost​ object, classify each of the following costs as indirect or​ direct, respectively: property taxes for the manufacturing​ plant, engines for the​ cars, and janitor wages for the factory.

A. indirect, direct, and indirect
B. all are indirect
C. indirect, direct, and direct
D. all are direct

Answer 1

Answer: B

Explanation: Engines for the cars is a cost directly related to the Ford cars being produced. The property taxes and the janitors rates are indirect costs because they are general costs needed to run the business but are not directly linked to the production of the ford cars