Direct Costs ________

question 61

Multiple Choice

Direct costs ________.

• A) are anything for which a measurement of costs is desired
• B) are costs related to a particular cost object that can be traced to that cost object in an economically feasible manner
• C) focus specifically on the costing needs of the CFO
• D) are costs related to a particular cost object that cannot be traced to that cost object in a cost-effective manner

Recognize the importance of revising standards in response to organizational or environmental changes.

Understand the principles and applications of variable and standard costing systems.

Calculate and analyze sales price, sales volume, and overhead variances.

Determine the fixed and variable components of costs using a flexible budget.