Which one of the following types of service costs are deferred and expensed only when the related service revenue is recognized?
A)initial indirect costs
B)direct costs
C)indirect costs
D)initial direct costs

Question

Quizplus · Accepted Answer

Initial direct costs are costs incurred to obtain a contract that are expected to be recovered through that contract. These costs are deferred and expensed only when the related service revenue is recognized.

Which One of the Following Types of Service Costs Are