Which of the following is considered an indirect cost for a service department at a car dealership?

The selection of the salary of the service manager as an indirect cost for a service department at a car dealership is appropriate because indirect costs are typically those expenses that are not directly traceable to a specific product or service. In a service department, while the mechanics' labor and the cost of oil filters can be directly attributed to specific services provided to customers, the service manager's salary represents an overhead expense that supports the entire service department's operation.

The service manager facilitates the overall functioning of the service department, which includes overseeing the mechanics and ensuring that customer service standards are met. Therefore, it is categorized as an indirect cost, as it cannot be pinpointed to a single service performed. Indirect costs, such as salaries of supervisory and administrative personnel, contribute to the overall operation but do not tie directly to the individual services rendered.

In contrast, options like the labor of the mechanics and the cost of oil filters are direct costs because they can be linked directly to the service provided (e.g., an oil change). Depreciation on the service bay equipment can be viewed as an indirect cost under broader definitions, but it usually serves as a fixed expense associated with the service area's operation, which complicates its classification in certain contexts. Therefore, among the