Which of the following statements is true?

Question

Quizplus · Accepted Answer

Indirect costs are those that cannot be easily and economically traced to an individual cost object. These costs are incurred to support a number of cost objects. Direct costs, on the other hand, can be easily traced to a specific cost object. Therefore, statement A is false, and statement C is the opposite of what is true. Statement D is also incorrect as the determination of a cost object is crucial for the allocation of costs.

Which of the Following Statements Is True