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:

Stock Repurchase

A situation where a company buys back its own shares from the marketplace, potentially increasing the value of remaining shares.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Stock Split

An increase in a firm’s shares outstanding without any change in owner’s equity.