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:

Cristae

The folds of the inner membrane of a mitochondrion that are involved in the electron transport chain of aerobic respiration, increasing the surface area for ATP production.

Mitochondria

Mitochondria are membrane-bound cell organelles responsible for generating most of the chemical energy needed to power the cell's biochemical reactions.

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, regulating the passage of substances in and out of the cell.

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, excluding the nucleus, containing organelles and the site of most cellular activities.