What Does Classifying a Cost as Either Direct or Indirect

question 104

Multiple Choice

What does classifying a cost as either direct or indirect depend upon?

• A)Whether an expenditure is avoidable or not in the future
• B)Whether the cost can be easily identified with the cost object
• C)Whether the cost is expensed in the period in which it is incurred
• D)The behaviour of the cost in response to volume changes

---

Definitions:

Physical Distribution

The set of activities concerned with moving products from the end of production to the end user, including transportation, warehousing, and inventory management.

Growth Stage

A phase in the life cycle of a business or product characterized by rapid revenue and customer base expansion, necessitating strategic planning for sustainability.

E-reader

A digital device designed for the purpose of reading books in a digital format.

Focus Groups

A research method where a small, diverse group of people whose reactions, perceptions, and opinions are studied regarding a particular topic or concept.