Which of the following is a direct cost of manufacturing a sport boat?

NetherCraft 0

which of the following is a direct cost of
manufacturing a sport boat?
a. cost of boat engine
b. salary of an engineer who rearranges plant layout
c. depreciation on plant and equipment
D. cost of customer service hotline

Answer

Answer is a.
Cost of boat engine

Direct Cost are the cost which can be directly linked to the
manufacturing of a particular item or goods.
Direct Cost consists of Labor, raw material and other
overhead.
Since in manufacturing a sport boat, we need boat engine. So, we
can say that boat engine is a direct cost we can only linked to the
manufacturing of sport boat.

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