Which of the following statements concerning direct and indirect costs is NOT true?

A. Whether a particular cost is classified as direct or indirect does not depend on the cost object.
B. The factory manager's salary would be classified as an indirect cost of producing one unit of product.
C. A particular cost may be direct or indirect, depending on the cost object.
D. A direct cost is one that can be easily traced to the particular cost object.


Answer: A

Business

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