Direct Costs

question 47

Multiple Choice

Direct costs

• A)are incurred for the benefit of the business as a whole.
• B)would continue even if a particular product were discontinued.
• C)can be assigned to product only by a process of allocation.
• D)are those costs that can be easily and accurately traced to a cost objective.

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Definitions:

Status Indians

Individuals recognized by the government as being registered under the Indian Act in Canada, entitled to certain rights and benefits.

Mentally Incompetent

Mentally Incompetent describes a person who is legally declared as incapable of handling their own affairs or making decisions due to mental limitations or illness.

Appointed

Assigned to a position or role by authority or decision rather than through election.

Executory Contract

A contract yet to be performed; a contract at the stage when an agreement has been made but before performance is due.