Question

costs that can be easily traced to cost-objects in a cost-effective manner are called costs. multiple choice question.

Answer 1

Costs that cannot be efficiently and promptly attributed to cost-objects are considered indirect costs.

What exactly are indirect costs?

Indirect costs are business expenses that are crucial to the running of the organization as a whole and the accomplishment of its objectives even though they aren't directly connected to a given grant, contract, project function, or activity.

Indirect costs include expenses that are typically classified as overhead, like rent and utilities, as well as general and administrative costs, like officer salaries, accounting department costs, and personnel department costs.

Direct expenses are those that can be connected to a specific product, whereas indirect costs are those involved in maintaining and operating a business.

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