Name : Raihan Shidqi Raditiya

Student ID : 1910533024
Please identify direct costs and indirect costs if our accounting department as a cost object.
Direct cost is a cost that can be easily and accurately traced to the cost object, i.e. the cost of
resources that is solely consumed by a particular cost object. If accounting department is used
as a cost object, then the direct cost is the salary of the head of accounting department
because the time of the head of the major is fully spent managing the accounting department.
Indirect cost is a cost that cannot be easily and accurately traced to the cost object. This cost
is charged to the product using the allocation. If the cost object is the accounting department,
then the example of indirect cost is the Dean of the Faculty of Economics. Because the dean
serves the Accounting Department, The Department of Management, and the Department of
Economics so the Dean's salary should be allocated to all three majors.