A Direct Cost Is a Cost That Is

question 65

Multiple Choice

A direct cost is a cost that is:

• A) Does not change with the volume of activity.
• B) Identifiable as controllable.
• C) Traceable to multiple cost objects.
• D) Traceable to a single cost object.
• E) Traceable to the company as a whole.

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Definitions:

Control Limits

Statistical boundaries in a control chart that determine the acceptability range for a process variability, outside of which signals a process is out of control.

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time, helping in the identification of out-of-control processes.

Lower Control Limit

The threshold in quality control charts below which a process is considered out of control and indicating a potential problem.

Mean Sample Proportion

Indicates the average proportion of a characteristic within a sample, calculated as the sum of individual attributes divided by the sample size.