Classifying a cost as either direct or indirect depends upon:
A)the behavior of the cost in response to volume changes
B)whether the cost is expensed in the period in which it is incurred
C)whether the cost can be easily identified with the cost object
D)whether an expenditure is avoidable or not in the future

Question

Quizplus · Accepted Answer

Direct costs can be easily and conveniently traced to a particular cost object, such as a product, service, or department. Indirect costs, on the other hand, cannot be easily traced to a specific cost object.

Classifying a Cost as Either Direct or Indirect Depends Upon