A Indirect Expense Should Be Traceable to a Respective Department

question 77

True/False

A indirect expense should be traceable to a respective department.

---

Definitions:

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs directly associated with the production of goods or services.

Direct Costs

Costs that can be traced directly to a cost object.

Cost Object

Anything for which a separate measurement of cost is desired, including products, services, projects, or customers.

Indirect Costs

Costs that cannot be traced directly to a cost object.