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Anonymous

Nov 17, 2024

Which of the following statements concerning direct and indirect costs is not true?

Which of the following statements regarding direct and indirect costs is false?

  1. Whether a particular cost is classified as direct or indirect does not depend on the cost object.
  2. A direct cost can be easily traced to a specific cost object.
  3. The salary of a factory manager would be classified as an indirect cost when producing one unit of a product.
  4. A particular cost may be classified as direct or indirect, depending on the cost object.

3 Answers

Whether a particular cost is classified as direct or indirect does not depend on the cost object - FALSE. BECAUSE "A particular cost may be direct or indirect, depending on the cost object".A direct cost is one that can be easily traced to the particular cost object -TRUE.The factory manager’s salary would be classified as an indirect cost of producing one unit of product. - TRUE.A particular cost may be direct or indirect, depending on the cost object. - TRUE.

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