Which of the Followings Statements Is Correct Regarding Direct and Indirect

question 157

Multiple Choice

Which of the followings statements is correct regarding direct and indirect costs?

• A) Direct costs cannot easily be traced to a cost object, whereas indirect costs can be easily traced to a cost object.
• B) Direct costs can be easily traced to a cost object, whereas indirect costs cannot be easily traced to a cost object.
• C) Direct costs are always relevant to a particular cost decision, whereas indirect costs are never relevant to a cost decision.
• D) Direct costs are never relevant to a particular cost decision, whereas indirect costs are always relevant to a cost decision.

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Definitions:

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