Homework Answers
Correct Answer : c) The sales commissions paid to Zippy's retail sales agent.
Reason : Sales commission is based upon units sold and is directly related to the cost of product sold. however, if sales agent were paid salary then it would not have been directly related to the cost of product sold and would have been considered as Indirect Cost.
Cost of Lubricant used is a Indirect expense.
Wages paid to for cleaning is also not directly related to product.
Cost of electricity and water is also not directly related to product.
In case of any doubts or issues, please do comment below
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