A Cost Can Be Direct or Indirect

question 23

True/False

A cost can be direct or indirect. The classification can change if the cost object changes.

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Definitions:

Cars

Motor vehicles with four wheels typically used for transportation of people rather than goods.

Trucks

Heavy vehicles used for transporting goods and materials over land.

Opportunity Cost

The cost of forfeiting the next best alternative when making a decision, representing the benefits missed when choosing one option over another.

Alfalfa

A perennial flowering plant often used as forage for livestock, valued for its high nutrient content and adaptability to diverse climates.