Which Statement Is True

question 208

Multiple Choice

Which statement is true?

• A)A direct cost of one cost object cannot be an indirect cost of another cost object.
• B)All variable costs are direct costs.
• C)A direct cost of one cost object can be an indirect cost of another cost object.
• D)All fixed costs are direct costs.

---

Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production, such as utilities for manufacturing premises and wages for hourly production workers.

Finished Goods Inventory

Finished goods awaiting purchase that have not been sold to consumers yet.

Budgeted Sales

The anticipated revenue from sales of products or services for a specific period, as projected in a company's budget.

Credit Sales

Sales for which payment is not received at the time of sale but is expected to be paid at a future date.