Which of the Following Is Characteristic of Indirect Costs

question 187

Multiple Choice

Which of the following is characteristic of indirect costs?

• A)Indirect costs can be easily and accurately traced to a cost object.
• B)Indirect costs are shared between or among more than one cost object.
• C)Indirect costs should always be assigned to a cost object.
• D)Indirect costs include all labour.

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Definitions:

Living Standards

refer to the quality and quantity of goods and services available to individuals or societies, reflecting their economic prosperity and quality of life.

Financial System

The group of institutions in the economy that help to match one person’s saving with another person’s investment

Main Function

The primary or most important role or purpose that an entity or system is designed or intended to fulfill.

Credit Risk

The probability of loss due to a borrower's failure to make payments as agreed upon.