An Example of a Direct Cost That Can Be Specifically

question 49

Multiple Choice

An example of a direct cost that can be specifically identified with a job and does not have to be allocated to the job using an overhead rate is:

• A)travel expenses.
• B)fringe benefits.
• C)utilities.
• D)office machine lease costs.

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Definitions:

Pollution

The introduction of contaminants into the natural environment that cause adverse changes and harm to the ecosystem.

Market Failure

A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.

Business Sector

A segment of the economy that represents the activities of businesses, corporations, and private enterprises that provide goods and services to consumers.

Deng Xiaoping

A Chinese communist leader who initiated significant economic reforms in China from the late 1970s, leading to its market economy transformation.