Which of the Following Statements Concerning Direct and Indirect Costs

question 185

Multiple Choice

Which of the following statements concerning direct and indirect costs is NOT true?

• A) Whether a particular cost is classified as direct or indirect does not depend on the cost object.
• B) A direct cost is one that can be easily traced to the particular cost object.
• C) The factory manager's salary would be classified as an indirect cost of producing one unit of product.
• D) A particular cost may be direct or indirect, depending on the cost object.

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