Some Costs That Possibly Could Be Traced Directly to Cost

question 113

Multiple Choice

Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because:

• A) Such costs cannot be traced to objects in a cost-effective manner.
• B) Such practice results in a more accurate accumulated cost for the object.
• C) Generally accepted accounting principles require some costs to be treated as indirect.
• D) All of the answers are correct.

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Definitions:

Legal Assent

An agreement to enter into a contract that is recognized by law, marked by the understanding and agreement to the terms by all parties involved.

Contract Dispute

A disagreement between parties regarding the terms, performance, or understanding of a contract.

Undue Influence

A legal term referring to an improper or excessive pressure on someone, influencing their decision or consent in a transaction or legal agreement.

Mistake Of Fact

(1) A mistake that is not caused by the neglect of a legal duty by the person committing the mistake but, rather, consists of unconscious ignorance of a past or present material event or circumstance. (2) An affirmative defense in which the defendant tries to prove that she or he made an honest and reasonable mistake that negates the guilty-mind element of a crime.