An example of an indirect cost that could be traced directly to individual jobs by examining invoices is:

Question

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Telephone and fax charges are expenses that can be directly linked to a specific job by examining invoices. The cost incurred for phone calls and faxes made for a particular job can be traced by reviewing the invoices or bills. Office rent, depreciation expense on office machines, and office supplies are indirect costs that are not easily traced to individual jobs by examining invoices.

An Example of an Indirect Cost That Could Be Traced