Question: Sparky Ltd is a business that employs a number of electricians. The business undertakes a range of work for its customers, from replacing fuses to installing complete wiring systems in new houses. In respect of a particular job done by Sparky Ltd, into which category (direct or indirect) would each of the following costs fall?
- The wages of the electrician who did the job.
- Depreciation of the tools used by the electrician.
- The salary of Sparky Ltd's account.
- The cost of cable and other materials used on the job.
- Rent of the premises where Sparky Ltd stores its inventories of cable and other materials.