Which of These Is an Example of an Indirect Cost

question 43

Multiple Choice

Which of these is an example of an indirect cost if Department T is the cost object?

• A) Depreciation on the organisation's building, part of which is occupies by Department T
• B) Depreciation on the computers held in Department T
• C) Commission paid to the sales persons in Department T
• D) A and B

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Definitions:

Short-term Loans

Borrowed funds that require repayment within a shorter timeframe, typically less than one year.

Long-term Loans

Financial obligations that are due for repayment over a period longer than one year.

Conservative Financing

A strategy prioritizing lower risk financing options, typically involving higher equity and lower debt levels to minimize insolvency risks.

Long-term Securities

Financial instruments that typically have a maturity period of more than one year and are used to finance longer-term investments.