The determination of a cost as either direct or indirect depends upon the ________.
A) accounting standards
B) tax system chosen
C) inventory valuation
D) cost object chosen

Question

Quizplus · Accepted Answer

The determination of a cost as either direct or indirect depends upon the cost object chosen. Direct costs are easily traceable to a specific cost object, while indirect costs cannot be traced back to a specific cost object without allocation or apportionment. Therefore, the determination of whether a cost is direct or indirect depends on the cost object chosen.

The Determination of a Cost as Either Direct or Indirect