Indirect Costs Occur When

question 129

Multiple Choice

Indirect costs occur when

• A)resources are shared by more than one product or service.
• B)costs are directly traced to products or services.
• C)controllable costs are incurred by cost objectives.
• D)All of these answer choices are correct.

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Definitions:

Control Accounts

Summary accounts in the general ledger that consolidate the details recorded in subsidiary ledgers for management and reporting purposes.

Accounting System

A system used by businesses for tracking their financial transactions, consisting of various processes, records, and reports.

Special Journals

Journals that record similar types of transactions, such as all credit sales.