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To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms
Indirect
Costs or actions that are not directly traceable to a specific product, service, or activity but are necessary for the business to operate.
Direct
Expenses or costs that can be directly traced to a specific cost object, like a product, department, or project.
Cost Object
Anything for which cost data are desired. Examples of cost objects are products, customers, geographic regions, and parts of the organization such as departments or divisions.
Period Costs
Costs that are not directly tied to the production process and are expensed in the period in which they occur.
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