What costs result from the joint use of a facility or a service by several products,departments,or process?
A)Opportunity
B)Direct
C)Common (or indirect)costs
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

Common (or indirect) costs result from the joint use of a facility or a service by several products, departments, or processes. This includes costs such as rent, utilities, maintenance, and salaries of shared employees, among others. Direct costs, on the other hand, are costs that can be specifically identified with a particular product, department, or process. Opportunity costs are the potential benefits that are foregone by choosing one option over the other. Therefore, the correct answer is C, common (or indirect) costs.

What Costs Result from the Joint Use of a Facility