Classifying a Cost as Either Direct or Indirect Depends Upon

question 23

Multiple Choice

Classifying a cost as either direct or indirect depends upon

• A) whether an expenditure is unavoidable because it cannot be changed regardless of any action taken.
• B) whether the cost is expensed in the period in which it is incurred.
• C) the behavior of the cost in response to volume changes.
• D) the cost object to which the cost is being related.

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Definitions:

Costs

Costs refer to the monetary value of resources spent or sacrificed to achieve a specific objective or operate a business.

Benefits

Various forms of value or services that organizations provide to their employees beyond wages, such as health insurance, retirement plans, and paid time off.

Constructive Conflict

A type of conflict in which disagreement or differences are dealt with in a positive manner, leading to innovative solutions and mutual respect among parties.

Stress Reactions

The behavioural, psychological, and physiological consequences of stress.