When refining a costing system,a company should classify as many costs as possible as 'indirect costs'.

Question

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When refining a costing system, a company should strive to classify as many costs as possible as direct costs so that they can be directly attributed to the products or services being produced. Indirect costs, while still important to track and allocate, are not directly tied to the production process and can be more difficult to allocate accurately.

When Refining a Costing System,a Company Should Classify as Many