If the Cost Object Is the Payroll Department in a Large

question 19

Multiple Choice

If the cost object is the payroll department in a large manufacturing firm which of these would be a direct cost?

• A) The raw materials cost of the products produced
• B) A share of the building space occupied based on percentage of floor space used
• C) the payroll department manager's yearly bonus payment
• D) The salaries of the shop floor employees that are paid by the payroll department staff

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Definitions:

Optimistic

Having a positive outlook or expectation about future outcomes or the general situation.

Future Earnings

The projected income a person or company is expected to generate in the future.

Public Saving

The portion of the government's revenue that remains after accounting for government spending.

Private Saving

The portion of households' income that is not spent on consumption but saved for future use.