Which of the Following Statements Is True

question 100

Multiple Choice

Which of the following statements is true?

• A) A direct cost of one cost object will always be a direct cost of another cost object.
• B) Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.
• C) All fixed costs are indirect costs.
• D) All direct costs are variable costs.

---

Definitions:

Centralized Location

A strategic location chosen for warehousing or manufacturing operations to minimize transportation costs and maximize efficiency by serving various regions from a single point.

Component Commonality

The strategy of using the same parts or components in multiple products or models to reduce costs and simplify production.

Information System

An organized system for the collection, organization, storage, and communication of information; it typically involves people, technology, and processes.

Information Centralization

The practice of gathering and managing all relevant information within a single, centralized database or system to improve accessibility and decision-making.