Costs That Donot Relate Directly to a Cost Object Are

question 75

Multiple Choice

Costs that donot relate directly to a cost object are its

• A)marginal cost.
• B)indirect cost.
• C)sunk cost.
• D)target cost.

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Definitions:

Service Departments

Divisions within a company that provide support and services to other departments rather than directly generating revenue.

Indirect Expenses

Costs that are not directly associated with the production of goods or services but necessary for the business to operate, like rent and utilities.

Department Income Statement

This financial statement measures the revenue, expenses, and net income of a specific department within a company, showcasing its financial performance.

Controllable Cost

Expenses that can be directly managed or influenced by a particular manager or department within a company.