Indirect costs are:
A) Costs that need to be assigned but cannot easily be traced to cost objects
B) Only variable costs
C) Costs that can easily be traced to cost objects
D) Only fixed costs

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot easily be traced to cost objects and therefore need to be assigned using allocation methods. Examples include rent, utilities, and salaries of managers that oversee multiple cost objects.

Indirect Costs Are