The terms direct cost and indirect costs are commonly used in accounting. A part

Question

The terms direct cost and indirect costs are commonly used in accounting. A particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. Classify a cost is either direct or indirect depends upon A. Cost object to which the cost as being related B. Behavior of the cost is responsible to volume changes C. Whether the cost is expensed in the period in which is incurred D.Whether an expenditure is avoidable because it cannot be changed regardless of any action taken The terms direct cost and indirect costs are commonly used in accounting. A particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. Classify a cost is either direct or indirect depends upon A. Cost object to which the cost as being related B. Behavior of the cost is responsible to volume changes C. Whether the cost is expensed in the period in which is incurred D.Whether an expenditure is avoidable because it cannot be changed regardless of any action taken A. Cost object to which the cost as being related B. Behavior of the cost is responsible to volume changes C. Whether the cost is expensed in the period in which is incurred D.Whether an expenditure is avoidable because it cannot be changed regardless of any action taken

Explanation / Answer

Answer:- The terms direct cost and indirect costs are commonly used in accounting. A particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. Classify a cost is either direct or indirect depends upon:- Cost object to which the cost as being related (Option a).

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