Sturbridge Company Manufactures Fine Furniture and Grandfather Clocks

Multiple Choice

Sturbridge Company manufactures fine furniture and grandfather clocks.Sturbridge has an excellent reputation,and each grandfather clock sells for several thousand dollars.Which of the following should not be treated as direct costs,assuming the cost object is individual clocks?

A) The clock face
B) The timing mechanism for each clock
C) Wood
D) Depreciation on clock-making equipment