A Direct Cost Is a Cost That Is

question 40

Multiple Choice

A direct cost is a cost that is:

• A)Identifiable as controllable.
• B)Traceable to the company as a whole.
• C)Does not change with the volume of activity.
• D)Traceable to a single cost object.
• E)Traceable to multiple cost objects.

Understand the concept and importance of internal control procedures over cash and other assets.

Comprehend the role and elements of a voucher system in internal control.

Grasp the objectives and significant components of internal control systems.

Acknowledge the impact and requirements of the Sarbanes-Oxley Act on internal controls and financial reporting.

---

Definitions:

James-Lange Theory

A theory suggesting that emotions are the result of physiological responses to external events, where our emotional experience arises from our recognition of bodily reactions.

Cannon-Bard Theory

A theory of emotion that posits emotions and physiological responses occur simultaneously, not sequentially.

Physiological Arousal

The physical state of being alert and engaged, often accompanied by increased heart rate, blood pressure, and energy as a response to a stimulus.

Autonomic Arousal

The activation of the autonomic nervous system, leading to physiological changes such as increased heart rate, sweating, or rapid breathing.