If you identify as many direct costs as is economically feasible,this increases the amount of costs classified as indirect,thereby minimising the extent to which costs have to be allocated rather than traced.

Question

Quizplus · Accepted Answer

If you identify more direct costs, the amount of indirect costs will decrease, which would increase the extent to which costs have to be allocated rather than traced. Therefore, the statement is false.

If You Identify as Many Direct Costs as Is Economically