Before determining whether a cost is direct or indirect it is necessary to know what the cost object is.

Name: Before determining whether a cost is direct or indirect it is necessary to know what the cost object is.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The classification of a cost as direct or indirect depends on its relationship to a specific cost object, which can be a product, department, or project. Knowing the cost object is essential to accurately categorize the cost.

Before Determining Whether a Cost Is Direct or Indirect It