Which of these is a cost that results from the joint use of a facility or a service by several products,departments,or processes?
A)direct cost.
B)indirect cost.
C)marginal cost.
D)variable cost.

Question

Quizplus · Accepted Answer

Indirect cost, also known as common cost or shared cost, arises due to the joint use of a facility or service by multiple products, departments, or processes. These costs cannot be directly traced to a particular product or service but are allocated based on a predetermined cost allocation method, such as using square footage or labor hours. Direct costs, on the other hand, are directly attributable to a specific product or service and can be traced to it. Marginal cost and variable cost are terms used to describe the cost of producing one additional unit or the variable costs of a specific product or service, respectively.

Which of These Is a Cost That Results from the Joint