Which of the Following Statements Is Correct Regarding Direct and Indirect

question 5

Multiple Choice

Which of the following statements is correct regarding direct and indirect costs?

• A) Direct costs cannot easily be traced to a cost object, whereas indirect costs can be easily traced to a cost object.
• B) Direct costs can be easily traced to a cost object, whereas indirect costs cannot be easily traced to a cost object.
• C) Direct costs are always relevant to a particular cost decision, whereas indirect costs are never relevant to a cost decision.
• D) Direct costs are never relevant to a particular cost decision, whereas indirect costs are always relevant to a cost decision.

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Definitions:

Midnight Deadline

A cutoff point often used in law and finance, indicating that transactions or actions must be completed by 11:59 PM to be considered valid for that day.

First Bank

Historically, could refer to an initial or pioneering banking institution in a region or country, often established to foster economic growth.

Business Days

Days of the week excluding weekends and public holidays during which official business activities are conducted.

Check 21 Act

A federal law that allows banks to handle more checks electronically, which speeds up the check clearing process.