Which of the Following Is Not True of Direct Costs

question 21

Multiple Choice

Which of the following is not true of direct costs?

• A) Direct costs are normally the major portion of product or service costs
• B) Direct costs are usually easily traceable
• C) Direct costs generally serve as the basis for allocation of supplier overhead costs
• D) Direct costs can vary a great deal depending upon the overhead allocation basis
• E) A tiny reduction in direct costs is often worth more to the buying firm than a major reduction in the percentage of profit

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Definitions:

Genome

The complete set of DNA, including all of its genes, in an organism, providing the genetic blueprint for its structure and function.

Zygote

The initial cell formed when a new organism is produced by the union of sperm and egg cells, before it begins division and growth.

Gamete

A reproductive cell; sperm in males and ovum in females.

Biological Sex

The classification of living beings, typically as male or female, based on their reproductive anatomy and functions.