Question

An example of a direct cost for a service provided by an accounting​ firm, such as a tax​ return, would​ be: A. labor of staff accountant who prepared the return. B. depreciation on computer system. C. rent on the office. D. labor of file clerk who filed copies of return.

Answer 1

Answer:

The correct answer is A

Explanation:

Direct cost is the cost or an expense which is directly tied to the production of the particular goods and services. It is usually variable costs, which means that the cost will fluctuate with the levels of the production like inventory.

Examples of direct costs are manufacturing supplies, direct labor, commissions, direct materials and piece rate wages.

So, the example of the direct costs for the service offered through accounting firm is the labor of the staff accountant who make the returns.