An individual cost item can be simultaneously a direct cost of one cost object and an indirect cost of another cost object.

Question

Quizplus · Accepted Answer

This statement is true. A cost item can be directly related to one cost object and indirectly related to another cost object, depending on how it is being used or consumed within each object. For example, the cost of a specific tool might be a direct cost of one production line but an indirect cost of overall factory maintenance.

An Individual Cost Item Can Be Simultaneously a Direct Cost