Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A) An indirect cost can be easily traced to an individual cost object.
• B) An indirect cost is one incurred to support a number of cost objects.
• C) A direct cost cannot be easily and economically traced to a cost object.
• D) The determination of a cost object is nor relevant to the traceability of costs.

---

Definitions:

Shift Solenoid

A shift solenoid is an electrically operated solenoid that either allows or blocks the flow of transmission fluid.

Valve Body

A critical component in an automatic transmission that controls the flow of hydraulic fluid, which in turn controls gear shifting and operation.

Differential Fluid

The lubricant used in a vehicle's differential to cool and reduce friction among the gears within.

Clutch System

Refers to the components that engage and disengage the engine's power transmission to the gearbox in a vehicle.