Assume a grocery store manager wants to know the cost of running the Produce Dep

Question

Assume a grocery store manager wants to know the cost of running the Produce Department.? Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce? Department?? (Identify each cost as either? "Direct" or? "Indirect" in regards to the Produce? Department.)

Wages of checkout clerks 2. ? Direct Indirect Wages for workers in the Produce Department 3. ? Direct Indirect Depreciation on refrigerated produce display cases 4. ? Direct Indirect Cost of weekly advertisements in local newspaper

Explanation / Answer

Direct Cost is the cost which can be directly identified with the product while the indirect cost is that cost which cannot be directly identified with the product.

In the Produce department, classification of costs will be as follows:

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