Regardless of the system used in departmental cost analysis:
Multiple Choice
Neither direct nor indirect costs are allocated.
Direct costs are allocated, indirect costs are not.
Both direct and indirect costs are allocated.
Total departmental costs will always be the same.
Indirect costs are allocated, direct costs are not.
Solution:
Regardless of the system used in departmental cost analysis, "Indirect costs are allocated, direct costs are not". Because direct cost are directly related they are not required to be allocated. On the other hand, indirect cost cannot be traced directly therefore they are required to be allocated.
Hence last option is correct.
Regardless of the system used in departmental cost analysis: Multiple Choice Neither direct nor indirect costs...
to an accountant, total cost includes To an accountant, total cost includes Multiple Choice Ο neither implicit nor explicit costs. Ο implicit, but not explicit, costs. Ο explicit, but not implicit, costs. Ο explicit and implicit costs.
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Compare direct costs to indirect costs. Give an example of a cost at a company that could be a direct cost at one level of the organization but would be considered an indirect cost at a different level of that organization. Explain why this same cost could be both direct and indirect (at different levels).
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