Most of the problems in cost allocation arise in connection with ___________ costs.

Question

Quizplus · Accepted Answer

Indirect costs are those which cannot be traced directly and easily to a cost object, and hence, allocation of such costs becomes difficult. Direct costs, on the other hand, are easily traced, and the allocation is relatively simple. Variable costs refer to those costs which vary with the level of activity or production, and ledger costs and separable costs are not relevant in this context.

Most of the Problems in Cost Allocation Arise in Connection