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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Definitions:

Bureau of Labor Statistics

A unit of the United States Department of Labor that collects, processes, analyzes, and disseminates essential statistical data related to labor market activity, working conditions, and price changes.

National Compensation Survey

The National Compensation Survey is a comprehensive study conducted by the Bureau of Labor Statistics in the United States that gathers and analyzes salary and benefits data across various occupations and regions.

Salaries

Regular payments made by employers to employees, usually monthly or bi-weekly, for their work or services.

Economic Theory

A set of principles and methodologies that explain and predict economic phenomena.