or indirect costs with respect to a local Lowes store the st

or indirect costs with respect to a local Lowe\'s store (the store is the cost object) In addition, state whether Lowe\'s would trace or allocate these costs to the store a. Direct Trace b. Indirect -Allocate c. Direct-Trace d. Indirect Allocate e. Direct-Trace f. Indirect Allocate 9 Store utilities The CEO\'s salary The cost of lumber The cost of national advertising The wages of store employens The cost of operating the corporate Payroll Department The cost of ceiling fans. ight switches and a

Solution

Direct cost:Cost that are directly related to production. Example: Direct Material,Direct Labor,Manufacturing Overhead etc. Indirect cost:Cost that are not directly associated to production . Example: Electrivity Expenses,Telephone Expenses etc. Cost Allocation: When we assigned a cost to a specific department, project etc. Trace Cost: Cost which can be easily tracable with particular departments. 8) Cost of Electicity fans,light switches and lamps=Indirect Allocate