Flash company produces lamps. all of the following are direct costs except:____.
a. lamp shade.
b. electrical cord.
c. wages for assembly.
d. switch.
e. factory rent.

Respuesta :

Flash company produces lamps. all of the following are direct costs except Factory rent.

The costs a business directly incurs to produce a good or provide a service, or to purchase a good at wholesale to resell, are known as direct costs. (All additional expenses are regarded as indirect expenses.)

Direct costs are expenses connected with a particular cost object. A product, person, sales region, or customer are examples of items for which costs are compiled and are referred to as cost objects. Consumable supplies, direct materials, sales commissions, and freight are a few examples of direct costs. Direct costs, also referred to as costs of goods sold (COGS), are expenses that are entirely attributable to the creation of a particular good or service. These expenses cover the direct costs of the materials used to make the product, as well as perhaps any labour costs incurred solely for its production.

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