Costs That Can Be Easily Traced to a Specific Department

question 25

Multiple Choice

Costs that can be easily traced to a specific department are called:

• A) direct costs.
• B) indirect costs.
• C) product costs.
• D) manufacturing costs.
• E) processing costs.

---

Definitions:

Compounded Annually

An interest calculation method where interest is added to the principal sum at the end of each year, affecting future interest calculations.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rates

The percentage of a loan amount charged by a lender to a borrower for the use of assets, varying with market conditions and credit risk.

Carrying Value

The book value of an asset or liability on a balance sheet, representing the cost minus accumulated depreciation or amortization.