An Example of an Indirect Cost That Could Be Traced

question 29

Multiple Choice

An example of an indirect cost that could be traced directly to individual jobs by examining invoices is:

• A)Office rent.
• B)Telephone and fax charges.
• C)Depreciation expense on office machines.
• D)Office supplies.

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Definitions:

FVTPL

Fair Value Through Profit or Loss, a financial reporting method where assets and liabilities are periodically revalued, with the changes affecting the income statement directly.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Significant Influence

The ability to engage in the financial and operational policy choices of an invested entity without having control over them.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors.