Knowee
Questions
Features
Study Tools

Delivery truck rentals are a part of which Costing type?1 puntoDirect CostIndirect CostStaff CostMaterial CostI-clear ang pinili

Question

Delivery truck rentals are a part of which Costing type?

1 punto

  • Direct Cost
  • Indirect Cost
  • Staff Cost
  • Material Cost

I-clear ang pinili

🧐 Not the exact question you are looking for?Go ask a question

Solution

Delivery truck rentals are a part of Direct Cost.

Here's why:

  1. Direct costs are those costs that can be directly attributed to a specific cost object, such as a product, project, or department. These costs are often variable costs, meaning they fluctuate with the level of output.

  2. In the context of a business that rents delivery trucks, the rental cost can be directly linked to the delivery of goods or services. Therefore, it is a direct cost.

  3. This is different from indirect costs, which cannot be directly linked to a specific cost object. Examples of indirect costs include utilities, office supplies, and administrative salaries.

  4. Staff costs and material costs can be either direct or indirect, depending on whether they can be directly attributed to a specific cost object. In this case, unless the staff or materials are specifically used for the delivery trucks, they would not be considered direct costs.

  5. Therefore, delivery truck rentals are a part of Direct Cost.

This problem has been solved

Similar Questions

Expenditures for acquisition of raw materials for your products  are a part of which Costing type?1 puntoDirect CostIndirect CostStaff CostMaterial Cost

Which of the following is reported as part of the operating expenses?Group of answer choicesFreight-inFreight-outCost of salesSales allowances

Fill in the Blank QuestionFill in the blank question.Preset costs for delivering a product or service under normal conditions are called costs.

The cost sheet provides a summary of:a.Fixed costsb.Variable costsc.Direct costsd.All costs associated with a product or serviceClear my choice

Warehouse rent is a part of .a.factory cost.b.prime cost.c.distribution cost.d.production cost.

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.