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 Medina Kohl's department store. (Kohl's is a chain of department stores and has stores located across the U.S.)
Depreciation of the building
Cost of costume jewelry on the mannequins in the Juniors Department
Cost of bags used to package customer purchases at the main registers for the store
The Medina Kohl's store manager's salary
Cost of the security staff at the Medina store
Manager of Juniors Department
Junior Department sales clerks
Cost of Juniors clothing
Cost of hangers used to display the clothing in the store
Electricity for the building
Cost of radio advertising for the store
Juniors clothing buyers‘ salaries (these buyers buy for all the Juniors Departments of Kohl's stores)
a direct cost is a cost that can be traced to a cost object. An indirect cost is a cost that relates to the cost object, but cannot be traced to it.
Depreciation of the building Indirect
Cost of costume jewelry on the mannequins in the Juniors Department Direct
Cost of bags used to package customer purchases at the main registers for the store Indirect
The Medina Kohl's store manager's salary Indirect
Cost of the security staff at the Medina store Indirect
Manager of Juniors Department Direct
Junior Department sales clerks Direct
Cost of Juniors clothing Direct
Cost of hangers used to display the clothing in the store Indirect
Electricity for the building Indirect
Cost of radio advertising for the store Indirect
Juniors clothing buyers‘ salaries (these buyers buy for all the Juniors Departments of Kohl's stores) Indirect
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