Which of the Following Statements Is Correct

question 119

Multiple Choice

Which of the following statements is correct?

• A)A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs.
• B)An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs.
• C)A direct cost can be traced to a specific cost object,while an indirect cost cannot.
• D)An indirect cost can be traced to a specific cost object,while a direct cost cannot.

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Definitions:

Labor Redesign

Labor redesign involves the restructuring of work processes, roles, and responsibilities to improve efficiency, productivity, and employee satisfaction within an organization.

Specialization

Focusing on a narrow area of expertise or activity, allowing a business or individual to become a known expert in that area.

Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies.

Law Of Experience

Suggests that with increased experience or production, companies can reduce costs and improve efficiency, often referred to as the learning curve.