All of the Following Are Examples of Indirect Costs That

question 154

Multiple Choice

All of the following are examples of indirect costs that can be classified as being variable costs except:

• A) Utilities.
• B) Material handling costs.
• C) Production supervisor salaries.
• D) Transportation costs.

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Definitions:

Opportunity Cost

The foregone benefit that would have been derived by an option not chosen.

Alternative Action

Potential different courses of action considered in a decision-making process.

Processed Further

A term used in cost accounting to describe materials or products that are subjected to additional operations or stages of processing beyond the initial production stage.

Relevant Costs

Expenses directly tied to a specific business decision, which should be considered when making that decision.