Question

h. Purchase of strawberries used in Smucker's Strawberry Preserves i. Depreciation on food research lab -4 Classify costs as direct or indirect (Learning Objective 3) Classify each of the following costs as a direct cost or an indirect cost, assuming that the cost object is the Juniors Department (clothing and accessories for teenage and young women) in the Stow Kohl's department store. (Kohl's is a chain of department stores and has stores located across the United States.) a. Juniors Department sales clerks b. Cost of Juniors clothing C. Cost of hangers used to display the clothing in the store d. Electricity for the building e. Cost of radio advertising for the store f. Juniors clothing buyers' salaries (these buyers buy for all the Juniors Departments of Kohl's stores) g. Depreciation of the building h. Cost of costume jewelry on the mannequins in the Juniors Department i. Cost of bags used to package customer purchases at the main registers for the store j. The Stow Kohl's store manager's salary k. Cost of the security staff at the Stow store 1. Manager of Juniors Department 5 Define cost terms (Learning Objectives 3 & 4)

Answer 1

The direct costs are costs that can be directly traced to the cost object and in the given case the cost object is Juniors Department. So the costs that can be directly traced to Juniors Department are direct costs.

Indirect costs are the costs that cannot be directly traced to the cost object and in the given case the cost object is Juniors Department. So the costs that cannot be directly traced to Juniors Department are indirect costs.

A	Junior Department sales clerks	Direct
B	Cost of juniors clothing	Direct
C	Costs of hangers used to display the clothing in the store	Indirect
D	Electricity used for the building	Indirect
E	Costs of radio advertising for the store	Indirect
F	Juniors clothing buyers’ salaries (these buyers for all the Juniors Departments of Kohl’s store)	Indirect
G	Depreciation of the Building	Indirect
H	Costs of costume jewelry on the mannequins in the juniors department	Direct
I	Costs of bags used to package customer purchases at the main registers for the store	Indirect
J	The Stow Kohl’s store manager salary	Indirect
K	Cost of the security staff at the Stow store	Indirect
L	Manager of Juniors Department	Direct