Final answer:
The CEO's Annual Bonus is most likely not a direct cost with respect to an individual finished product by Crass-Craft because it is not directly attributable to the manufacture of a single yacht but rather is linked to the overall administration of Crass-Craft. The correct option is c.
Step-by-step explanation:
When considering the costs associated with producing a custom-manufactured yacht by Crass-Craft, it's important to differentiate between direct and indirect costs. Direct costs are those that can be directly attributed to the production of a specific good or service, like a yacht in this case. These costs change directly with the level of production. Options such as the Cost of Specialized Paint and the Cost of Engine Installation are indeed direct costs because they can be directly tied to an individual yacht's manufacture. Similarly, the Labor for Yacht Assembly is a direct cost because the workers are directly involved in putting together the yacht.
On the contrary, the CEO's Annual Bonus would most likely NOT be a direct cost in relation to the production of an individual yacht. This is because the CEO's compensation is typically considered an indirect cost. It is not directly attributable to the production of a single unit and does not vary with the number of units produced. Instead, it is a cost related to the overall management and administration of the company, which benefits the company as a whole, rather than being associated with the production of any single yacht.