Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because:

Question

04-06-2021
Business

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Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because:

Sagot :

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andromache andromache · Answer 1 · 2021-06-05T21:20:27-04:00

Answer:

A. such costs cannot be traced to objects in a cost-effective manner

Explanation:

In the case when some cost that could be traced to cost objective are categorized as the indirect cost as such cost could not be traced with regard to the object on the cost effective as it might be possible to trace the cost but it might not be worth

So in this case it should be categorized as the indirect cost and the same is allocated to the cost object

Sagot :

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