Costs can be either direct or indirect,depending upon the cost object.

Name: Costs can be either direct or indirect,depending upon the cost object.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Direct costs are costs that can be easily traced to a specific cost object, such as a product or department. Indirect costs are costs that cannot be easily traced to a specific cost object, such as overhead or rent expenses. The classification of a cost as direct or indirect depends on the cost object being considered.

Costs Can Be Either Direct or Indirect,depending Upon the Cost