Which of the Following Does NOT Affect the Direct/indirect Classification

question 105

Multiple Choice

Which of the following does NOT affect the direct/indirect classification of a cost?

• A)the level of budgeted profit for the next year
• B)available technology to gather information about the cost
• C)the design of the operation
• D)the materiality of the cost in question

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Definitions:

Federal Trade Commission

A federal agency charged with protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Wheeler-Lea Act

The federal law of 1938 that amended the Federal Trade Commission Act by prohibiting unfair and deceptive acts or practices of commerce (such as false and misleading advertising and the misrepresentation of products).

Misleading Advertising

Promotional activities that intentionally or unintentionally deceive or misguide consumers regarding the nature, qualities, or benefits of a product or service.

Clayton Act

A U.S. legislation enacted in 1914 designed to enhance antitrust laws by prohibiting certain actions that could lead to anti-competitive practices.