Which One of the Following Items Is a Direct Cost

question 43

Multiple Choice

Which one of the following items is a direct cost?

• A) Customer-service costs of a multiproduct firm; Product A is the cost object.
• B) Printing costs incurred for payroll check processing; payroll check processing is the cost object.
• C) The salary of a maintenance supervisor in a multiproduct manufacturing plant; Product B is the cost object.
• D) Utility costs of the administrative offices; the accounting department is the cost object.

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Definitions:

Median

The middle value in a set of data points arranged in ascending or descending order, or the average of the two middle values when there is an even number of data points.

Correlation Coefficient

A numerical measure that indicates the strength and direction of a linear relationship between two variables.

Mean

A measure of central tendency, calculated as the sum of all values in a dataset divided by the number of values.

Geometric Mean

The average of a set of numbers or quantities, computed by taking the nth root of the product of the numbers.