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Information:
Customer A order 600 shirts
Out of the 600 t-shirts, 20 t-shirts had their sleeves accidentally burnt when they were being ironed at the end of the printing process. Shine Printing Co (the firm) decided to cut off the sleeves, blank out the customer's organisation logo and sell them as sleeveless to its (Shine Printing Co) employees. There will be an additional costs incurred totalled $1.00 per t-shirt for making the t-shirt sleeveless.
Question:
Question 1: Is the additional costs incurred totalled $1.00 per t-shirt for making the t-shirt sleeveless a indirect cost? Why?
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