Common costs,those not directly caused by the cost object are
A)not relevant.
B)non-differential.
C)both not relevant and non-differential.
D)neither not relevant nor non-differential.

Question

Quizplus · Accepted Answer

Common costs are not directly caused by the cost object and are not relevant as they cannot be attributed solely to a specific cost object. They are also non-differential as they do not change depending on the level of output or activity of the cost object. Therefore, both options A and B are incorrect. The correct choice is C.

Common Costs,those Not Directly Caused by the Cost Object Are