Direct Costs Are So Named Because They Can Be Assigned

question 36

True/False

Direct costs are so named because they can be assigned directly to a work package and activity.

---

Definitions:

Acquisition Cost

is the total cost incurred to acquire an asset, investment, or property, which includes the purchase price and all associated expenses.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Cash Purchase

A transaction method in which goods or services are paid for in full with cash at the time of purchase.

Incremental Value

Incremental value refers to the additional or extra value generated by undertaking a specific action or investment compared to not doing so.