Which of the Following Statements About the Direct/indirect Cost Classification

question 134

Multiple Choice

Which of the following statements about the direct/indirect cost classification is NOT true?

• A)Indirect costs are always traced.
• B)Indirect costs are always allocated.
• C)The design of operations affects the direct/indirect classification.
• D)The direct/indirect classification depends on the choice of cost object.

Understand the importance and application of adjusting entries in financial accounting.

Recognize the key accounting assumptions and how they affect financial reporting.

Identify the characteristics and implications of different types of accounting periods.

Comprehend the principles guiding revenue and expense recognition.

---

Definitions:

Controlling Function

The management activity that monitors performance, compares it with goals, and takes corrective action as needed.

Supervising

The act of overseeing, directing, and managing the work and performance of others, often in a workplace setting.

Developing People

Fostering growth and improvement in individuals within an organization through training, mentoring, and providing opportunities for professional development.

Technical Skill

Specific knowledge or expertise required to perform a particular task or job, usually involving methods, processes, or procedures.