If a Frozen Pizza Plant Is the Cost Object, Classify

question 60

Multiple Choice

If a frozen pizza plant is the cost object, classify each of the following costs as direct or indirect, respectively: property insurance, cafeteria workers wages, and janitorial supplies.

• A)direct, indirect, and indirect
• B)direct, indirect, and direct
• C)all are direct
• D)all are indirect

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Definitions:

Transaction Exposure

The risk of adverse changes in exchange rates affecting the value of a company's transactions in foreign currencies.

Financial Risk

Refers to the possibility of losing money on an investment or business venture.

Home Currency

Home currency refers to the currency of the country in which an individual or entity primarily operates or resides.