Costs that relate specifically to one center and are incurred for the sole benefit of that center are
A) common fixed costs.
B) direct fixed costs.
C) indirect fixed costs.
D) noncontrollable fixed costs.

Question

Quizplus · Accepted Answer

Direct fixed costs are costs that can be directly attributed to a specific center or department and are incurred for the sole benefit of that center. Common fixed costs are shared costs across multiple centers, indirect fixed costs cannot be directly attributed to a specific center, and noncontrollable fixed costs are costs that cannot be influenced or controlled by the center.

Costs That Relate Specifically to One Center and Are Incurred