Indicate whether each of the following statements is true or false.Indirect costs cannot be traced to a cost object in a cost-effective manner. For a factory with several departments, each department could be treated as a cost object. Depreciation on a factory building is a direct cost for the departments in the factory. For a factory with several departments, depreciation on equipment used in one department would be a direct cost to that department. An individual cost cannot be both fixed and direct with respect to a particular cost object.
What will be an ideal response?
| Indirect costs cannot be traced to a cost object in a cost-effective manner. | True |
| For a factory with several departments, each department could be treated as a cost object. | True |
| Depreciation on a factory building is a direct cost for the departments in the factory. | False |
| For a factory with several departments, depreciation on equipment used in one department would be a direct cost to that department. | True |
| An individual cost cannot be both fixed and direct with respect to a particular cost object. | False |
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What will be an ideal response?