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.