Which Statement About Indirect Costs Is FALSE

question 115

Multiple Choice

Which statement about indirect costs is FALSE?

• A)Today,indirect costs exceed 50% of total costs in many companies.
• B)Some indirect costs are variable.
• C)Managers can ignore indirect costs and make good operational decisions.
• D)Indirect costs include labor costs that cannot be traced to a particular product.

---

Definitions:

Recession

A decline in production, employment, and income.

Monopoly

A market structure where a single firm or entity controls the entire supply of a product or service, restricting competition.