Physically tracing ________ costs is usually straightforward,but allocating ________ costs is usually more complex.
A)indirect; direct
B)direct; product
C)direct; indirect
D)unallocated; indirect

Question

Quizplus · Accepted Answer

Direct costs are those that can be easily and directly traced to a specific product or process, while indirect costs refer to those that are shared among multiple products or processes and cannot be directly attributed to any one of them. Physically tracing indirect costs is usually straightforward (e.g. counting the number of units of electricity used by a factory), while allocating them is more complex (e.g. determining how much of the electricity bill should be assigned to each product line).

Physically Tracing ________ Costs Is Usually Straightforward,but Allocating ________ Costs

Physically Tracing Costs Is Usually Straightforward,but Allocating Costs