Indirect Costs Are

question 118

Multiple Choice

Indirect costs are:

• A)costs that are not worth the effort to trace to a specific cost object.
• B)costs that change,in total,in direct proportion to changes in activity levels.
• C)always irrelevant.
• D)costs that remain constant no matter the activity level.

---

Definitions:

Nominal Interest Rate

The interest rate before adjustments for inflation, reflecting the rate of return as stated by the financial institution.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.

Nominal Wages

The amount of money paid to workers before adjusting for inflation, reflecting the face value of earnings irrespective of purchasing power.

Annual Rate

A percentage that represents the growth, yield, or return of an investment or account over a one-year period.