Cabot's CEO's annual compensation is an example of a ________ cost.
A) direct
B) variable
C) traceable common
D) nontraceable common
E) manufacturing

Question

Quizplus · Accepted Answer

The CEO's annual compensation is considered a nontraceable common cost because it cannot be directly traced to a specific department or product within the company. It is a general expense that supports the entire organization.

Cabot's CEO's Annual Compensation Is an Example of a ________