Question

direct costs: multiple choice are incurred to benefit a particular accounting period. are incurred due to a specific decision. can be easily traced to a particular cost object. are the variable costs of producing a product.

Answer 1

Correct option is C. direct costs Can be easily traced to a particular cost object.

What is direct cost in accounting?

A cost that could be directly related to the creation of a certain commodity or service is referred to as a direct cost. A department, a service, or a product may serve as the cost object and the origin of a direct cost.

Direct and indirect charges are the two basic types of fees or prices that firms may incur. Oftentimes, direct costs are variable costs, meaning they fluctuate in reaction to output levels and stock levels. Other costs, such as indirect costs, are harder to connect to a specific product, though. Office expenses and depreciation are two examples of indirect costs.

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