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Diez Company produces sporting equipment, including leather footballs. Identify each of the following costs as direct (D) or indirect (I). The cost object is a football produced by Diez.
_____ 1. Electricity used in the production plant.
_____ 2. Labor used on the football production line.
_____ 3. Salary of manager who supervises the entire plant.
_____ 4. Depreciation on equipment used to produce sports equipment.
_____ 5. Leather used to produce footballs.

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abiolataiwo2015

Identifying each of the following costs as direct (D) or indirect (I). The cost object is a football produced by Diez.

1. Electricity used in the production plant - Indirect cost

2. Labor used on the football production line-  Direct cost

3. Salary of manager who supervises the entire plant -Indirect cost

4. Depreciation on equipment used to produce sports equipment -Indirect cost

5. Leather used to produce footballs- Direct cost

What is direct and indirect cost?

A direct cost can be defined as those expense that are  incurred directly by a business owner so as to produce a  product or goods and  services.

On the other hand indirect cost can be defined as those cost that are not associated with production cost.

Therefore Electricity used in the production plant is an Indirect cost.

Learn more about direct and indirect cost here:https://brainly.com/question/24762880

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