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Specific to a single contract

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Reference no: EM131446624

Company TUV, a manufacturing company, has several job sites, and each site is specific to a single contract. TUV has a central depot from all contract materials are purchased, stored, and shipped. TUV employs several buyers who purchase materials to be used in their manufacturing efforts. All of the materials are purchased for specific contracts; none are purchased for general use across contracts. TUV uses its own drivers and delivery vehicles to deliver the materials to the job sites. Drivers will often visit multiple sites in one trip. What are the direct costs?

  • The cost of the materials.
  • The rent for the materials depot.
  • The drivers' time.
  • The buyers' time spent purchasing materials for all contracts.

Reference no: EM131446624

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