Whenever economically feasible, managers prefer costs to be indirect rather than direct.

Question

Quizplus · Accepted Answer

Managers prefer costs to be direct rather than indirect because direct costs can be easily traced to products or services, making it easier to determine profitability and make pricing decisions. Indirect costs are harder to allocate to specific products or services, which can make it difficult to accurately determine their costs and profitability.

Whenever Economically Feasible, Managers Prefer Costs to Be Indirect Rather