Indirect costs of a cost object are costs related to the cost object that managers and management accountants can trace to it in an economically feasible way.

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be directly traced to a cost object. They are allocated or apportioned to the cost object based on some logical or predetermined method. Therefore, option B is the correct answer.

Indirect Costs of a Cost Object Are Costs Related to the Cost