Direct Costs and Indirect Costs Can Be Easily Traced Directly

question 243

True/False

Direct costs and indirect costs can be easily traced directly to a cost object.

---

Definitions:

Unearned Fees

Income received for services that have not yet been performed or delivered.

Monthly Salary

A fixed amount of payment received by an employee from an employer on a monthly basis.

Unused Supplies

Supplies that have been purchased but not yet used in the operation of a business.

Prepaid Insurance

An asset account on the balance sheet that represents a payment made for insurance services that have not yet been received or used up within the period of the insurance contract.