An indirect cost
A) can be easily and accurately traced to a cost object.
B) is hard to trace.
C) should never be assigned to a cost object.
D) do none of these.

Question

Quizplus · Accepted Answer

An indirect cost is a cost that cannot be easily and accurately traced to a cost object. Unlike direct costs, which are easily identifiable with a specific cost object, indirect costs cannot be directly attributed to a particular product, service, or department. Examples of indirect costs include rent, utilities, and salaries of support personnel.

An Indirect Cost