Which statement about indirect costs is FALSE?
A)Today,indirect costs exceed 50% of total costs in many companies.
B)Some indirect costs are variable.
C)Managers can ignore indirect costs and make good operational decisions.
D)Indirect costs include labor costs that cannot be traced to a particular product.

Question

Quizplus · Accepted Answer

Managers cannot ignore indirect costs and make good operational decisions. Indirect costs are important to consider as they have a significant impact on the overall cost of production and the allocation of resources. Ignoring them can lead to incorrect decision making and affect profitability.

Which Statement About Indirect Costs Is FALSE