Questions: Tyler Inc. manufactures bikes and skateboards in a single factory. Assuming bikes as the cost object, which of the following would NOT be true? The cost of aluminum in the bike frames would be a direct cost. The cost of the wages of employees who assemble the bikes would be an indirect cost. The cost of leasing the factory would be an indirect cost. The cost of the wheels on the bikes would be a direct cost.

The answer is the second one: The cost of the wages of employees who assemble the bikes would be an indirect cost.

Explanation for each option:

1. The cost of aluminum in the bike frames would be a direct cost.
   This statement is true. Direct costs are those that can be directly traced to a specific cost object, such as a product. Since aluminum is a material specifically used in the bike frames, it is a direct cost.

2. The cost of the wages of employees who assemble the bikes would be an indirect cost.
   This statement is NOT true. The wages of employees who assemble the bikes are a direct cost because these wages can be directly traced to the production of the bikes. They are directly associated with the cost object, which is the bike.

3. The cost of leasing the factory would be an indirect cost.
   This statement is true. The cost of leasing the factory is an indirect cost because it is not directly traceable to a single product, such as a bike or a skateboard. It is a shared cost for the entire facility.

4. The cost of the wheels on the bikes would be a direct cost.
   This statement is true. Similar to the aluminum, the wheels are a component specifically used in the bikes, making them a direct cost.

In summary, the incorrect statement is the second one, as the wages of employees assembling the bikes should be considered a direct cost, not an indirect cost.