Which of the following terms describes a cost that does not relate directly to a cost object?
A)outlay cost.
B)direct cost.
C)indirect cost.
D)opportunity cost.

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be traced directly to a specific cost object or product. Examples include rent, utilities, and overhead expenses. Outlay cost, direct cost, and opportunity cost are all types of costs that relate directly to a cost object.

Which of the Following Terms Describes a Cost That Does