Final Answer:
An example of direct costs for the golf equipment line is Monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver. Thus the correct option is C. Monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver.
Step-by-step explanation:
Direct costs are expenses that can be specifically traced to a particular product or service. In the case of the manufacturing plant producing golf equipment, the monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver fall under direct costs. These payments directly contribute to the production of the golf driver and are essential for its manufacturing process.
The rationale behind categorizing the lease payments as a direct cost lies in the fundamental definition of direct costs. Direct costs are incurred in the production of a specific product, and in this scenario, the specialized equipment is exclusively used for the manufacturing of the golf driver.
The other options (A, B, and D) are not directly tied to the production of the golf equipment line. Salaries of clerical staff (Option A) and beverages in the break room (Option B) are typically considered indirect costs, and overheads incurred in producing both golf and soccer equipment (Option D) are indirect costs that cannot be specifically allocated to just the golf equipment line.
In summary, by selecting option C, we identify a direct cost that is directly linked to the production of the golf equipment line, aligning with the definition and characteristics of direct costs in a manufacturing setting.
Thus the correct option is C. Monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver.