Costs which are NOT economically feasible to trace but which are related to a cost object are known as ________.
A) incremental costs
B) marginal costs
C) indirect costs
D) variable costs

Question

Quizplus · Accepted Answer

Indirect costs are those costs which cannot be directly traced to a specific cost object. These costs are not economically feasible to trace, but are incurred in relation to a cost object. Incremental costs refer to the additional costs incurred when producing one more unit of a product or service, while marginal costs refer to the change in total cost when one more unit of a product or service is produced. Variable costs are costs that vary with the level of production.

Costs Which Are NOT Economically Feasible to Trace but Which