Which Definition Best Describes Direct Costs

question 9

Multiple Choice

Which definition best describes direct costs?

• A) Direct costs are those costs which are directly controlled by a manager.
• B) Direct costs are always variable.
• C) directly associated with a product or service.
• D) Direct costs are those costs which are directly charged to a department.

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Definitions:

Population standard deviation

A measure of the dispersion or variability within a total population.

Sample median

The midpoint value of a sample data set, where half the numbers are above the median and half are below.

Confidence interval

An extent of values, obtained via sample statistical analysis, seen as likely embracing the unknown value of a population attribute.

Random sample

A subset of individuals chosen from a larger set where each member has an equal chance of being selected.