Which of the Following Is True of Indirect Costs

question 119

Multiple Choice

Which of the following is true of indirect costs?

• A) Indirect costs are always considered sunk costs.
• B) All indirect costs are included in cost of goods sold.
• C) Indirect costs always vary in direct proportion to the level of production.
• D) Indirect costs cannot be traced to a particular cost object in an economically feasible way.

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