Costs that donot relate directly to a cost object are its
A)marginal cost.
B)indirect cost.
C)sunk cost.
D)target cost.

Question

Quizplus · Accepted Answer

Indirect costs do not directly relate to a cost object and are typically incurred to support the production process or business operations as a whole. Marginal cost refers to the cost of producing one additional unit and may or may not be directly related to the cost object. Sunk cost refers to a cost that has already been incurred and cannot be recovered. Target cost is a planned cost for a product or service to achieve a desired profit margin.

Costs That Donot Relate Directly to a Cost Object Are