Classification of Costs The following is a list of costs from the accounting records of SunshinePool Management Inc. Each of Sunshine’s 77 customers is a swim club. Sunshine maintains eachcustomer’s pool by providing lifeguards, supplies, cleaning, and repairs.1. Lifesaving supplies2. Salaries of Sunshine’s managers3. Pool chemicals4. Sunshine’s office rental expense5. Wages of lifeguards6. Workers’ compensation insurance7. Training for lifeguards8. pH testing supplies9. Office expense, including bookkeeping and clerical10. Depreciation on cleaning and testing equipmentRequired Classify each item as direct or indirect assuming that the cost objects are each of the77 swim clubs.
Classification of Costs The following is a list of costs from the accounting records of SunshinePool Management Inc. Each of Sunshine’s 77 customers is a swim club. Sunshine maintains eachcustomer’s pool by providing lifeguards, supplies, cleaning, and repairs.1. Lifesaving supplies2. Salaries of Sunshine’s managers3. Pool chemicals4. Sunshine’s office rental expense5. Wages of lifeguards6. Workers’ compensation insurance7. Training for lifeguards8. pH testing supplies9. Office expense, including bookkeeping and clerical10. Depreciation on cleaning and testing equipmentRequired Classify each item as direct or indirect assuming that the cost objects are each of the77 swim clubs.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Classification of Costs The following is a list of costs from the accounting records of Sunshine
Pool Management Inc. Each of Sunshine’s 77 customers is a swim club. Sunshine maintains each
customer’s pool by providing lifeguards, supplies, cleaning, and repairs.
1. Lifesaving supplies
2. Salaries of Sunshine’s managers
3. Pool chemicals
4. Sunshine’s office rental expense
5. Wages of lifeguards
6. Workers’ compensation insurance
7. Training for lifeguards
8. pH testing supplies
9. Office expense, including bookkeeping and clerical
10. Depreciation on cleaning and testing equipment
Required Classify each item as direct or indirect assuming that the cost objects are each of the
77 swim clubs.
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