Which of the Following Statements About the Direct/indirect Cost Classification

question 31

Multiple Choice

Which of the following statements about the direct/indirect cost classification is true?

• A) Indirect costs are always traced.
• B) Indirect costs are always allocated.
• C) The design of sales target affects the direct/indirect classification.
• D) The direct/indirect classification depends on the cost control measures.

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Definitions:

Volume Range

The spectrum of production output quantities that a manufacturing system or process can handle, from minimum to maximum volumes.

Transportation

The movement of people or goods from one location to another by various modes such as road, rail, air, or sea.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Manufacturers

Companies or individuals that produce finished goods from raw materials through various processes, machinery, and operations.