Which statement is true concerning direct fixed costs?

Question

Quizplus · Accepted Answer

Direct fixed costs are also known as traceable costs as they can be directly linked to a particular cost object, such as a department or product. Option B is not correct because profit centre managers are responsible for controlling direct fixed costs. Option C is also not correct as direct fixed costs are specific to a particular centre. Option D is not completely correct as direct fixed costs are not deducted from the controllable margin but rather part of the overall cost of the centre.

Which Statement Is True Concerning Direct Fixed Costs