Which of the Following Is NOT a Factor in Determining

question 129

Multiple Choice

Which of the following is NOT a factor in determining whether a cost is direct or indirect?

• A) The cost can be identified specifically with a given cost objective.
• B) The identification of the cost is economically feasible.
• C) The cost objective used.
• D) The manager's preference.

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Definitions:

Consecutive Payments

Regular payments made in a series one after another, often referring to loan repayments or lease payments.

Accrued Liability

A liability that has been incurred, often for expenses, that has not yet been paid or recorded at the end of the accounting period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.