Which of the followings statements is correct regarding direct and indirect costs?
A. Direct costs are always relevant to a particular cost decision, whereas indirect costs are never relevant to a cost decision.
B. Direct costs cannot easily be traced to a cost object, whereas indirect costs can be easily traced to a cost object.
C. Direct costs can be easily traced to a cost object, whereas indirect costs cannot be easily traced to a cost object.
D. Direct costs are never relevant to a particular cost decision, whereas indirect costs are always relevant to a cost decision.
Answer: C
You might also like to view...
Under the periodic inventory method, after posting adjusting entries, the debit amount in the merchandise inventory account reflects the inventory on hand at the end of the accounting period
Indicate whether the statement is true or false
In the two upcoming basketball games, the probability that UTC will defeat Marshall is 0.63, and the probability that UTC will defeat Furman is 0.55. The probability that UTC will defeat both opponents is 0.3465. a.What is the probability that UTC will defeat Furman given that they defeat Marshall?b.What is the probability that UTC will win at least one of the games?c.What is the probability of UTC winning both games?d.Are the outcomes of the games independent? Explain and substantiate your answer.
What will be an ideal response?
Which of the following situations would require interperiod income tax allocation procedures?
a. A temporary difference exists because the tax basis of capital equipment is less than its reported amount in the financial statements. b. Proceeds from an insurance policy on capital equipment lost in a fire exceed the book value of the equipment. c. Last period's ending inventory was understated causing both net income and income tax expense to be understated. d. Nontaxable interest payments are received on municipal bonds.
Answer the following statements true (T) or false (F)
Accounting for post-retirement benefits is very different from pension accounting.