Question

another multiple choice..
Direct and Indirect Costs
Which one of the following statements best explains why companies want to distinguish between
direct and indirect costs?
a. To evaluate business segments on the basis of only those costs directly traceable to each
segment
b. To better determine whether a company is a large organization or a small
organization
c. To determine the sales prices necessary to break even
d. To better distinguish between variable and fixed costs for each product
e. To better distinguish between materials costs and labor costs

Answer 1

Direct costs are those that are easily and conveniently teaceable to the cost objects under consideration. Indirect costs are difficult to trace to any particular cost object. I choose a.

Answer 2

I owe you. Thank you so very much! MWAH!

Answer 3

::^)