Which of the Following Statements Regarding Direct and Indirect Costs

question 17

Multiple Choice

Which of the following statements regarding direct and indirect costs is true?

• A)Direct costs are always variable and indirect costs are always fixed.
• B)Sunk costs are always direct, and opportunity costs are always fixed.
• C)The distinction between a direct and indirect cost depends on the product, activity, or department to which the cost pertains.
• D)If a cost is indirect to a department within a plant, it will also be indirect for the plant as a whole.

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Definitions:

Unranked Categories

Categorizations without an inherent order or hierarchy among them, where elements are grouped based on qualitative differences rather than quantitative measures.

Measure Of Central Tendency

A statistical value that describes a central or typical value for a set of data, such as mean, median, or mode.

Political Party Affiliation

The formal association of individuals with a political party, often indicating shared ideologies, policies, and goals.

Parameter

A characteristic or constant factor that defines or limits a system, model, or equation.