Which of the Following Statements Is True of Direct Costs

question 127

Multiple Choice

Which of the following statements is true of direct costs?

• A) A direct cost of one cost object is a true sense of the budgeted costs.
• B) All variable costs are direct costs.
• C) A direct cost of one cost object can be an indirect cost of another cost object.
• D) All fixed costs are direct costs.

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Definitions:

Simple Interest

Interest determined exclusively on the original amount, or on the remaining amount of the principal that is not yet paid.

Financial Position

A snapshot of what a company owns and owes at a specific point in time, encompassing assets, liabilities, and equity.

Promissory Note

A Promissory Note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Simple Interest

Interest calculated only on the principal amount, not on previous interest earned.