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Which of the following statements is true of direct costs?

jerico

wrote...

Posts: 4603

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9 years ago

Which of the following statements is true of direct costs?

Which of the following statements is true of direct costs?
A) A direct cost of one cost object is a true sense of the budgeted costs.
B) All variable costs are direct costs.
C) A direct cost of one cost object can be an indirect cost of another cost object.
D) All fixed costs are direct costs.

Textbook

Cost Accounting

Cost Accounting

Edition: 14^th

Authors: Horngren, Datar, Rajan

Read 217 times

2 Replies

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Actual costing traces direct costs to a cost object by multiplying the budgeted direct cost rate and ...

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Replies

biochicka

wrote...

#1

9 years ago

C) A direct cost of one cost object can be an indirect cost of another cost object.

jerico Author

wrote...

#2

9 years ago

I can confidently say that it looks and sounds right lol Thank you Slight Smile

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