Direct Expenses are those which can be identified with the particular products. Which of the following items is a direct cost?
A. The rent of the factory in which products are made
B. The wages of the production supervisor
C. A royalty paid to the holder of a patent after each item is produced
D. The cost of the glue used to attach labels to the products.
Answer:C
Direct Expenses are those which can be identified with the particular products. Which of the following items is a direct cost?
A. The rent of the factory in which products are made B. The wages of the production supervisor C. A royalty paid to the holder of a patent after each item is produced D. The cost of the glue used to attach labels to the products.