Which of the following statements is correct regarding direct and indirect costs?

A. Direct costs cannot easily be traced to a cost object, whereas indirect costs can be easily traced to a cost object.
B. Direct costs are always relevant to a particular cost decision, whereas indirect costs are never relevant to a cost decision.
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

Business

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