A direct cost of one cost object cannot be an indirect cost of another cost object.

Name: A direct cost of one cost object cannot be an indirect cost of another cost object.
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A direct cost of one cost object can be an indirect cost of another cost object. For example, department A might perform some part of the processing of a product B. The costs incurred in department A would be direct costs of cost object department A but could be an indirect cost of cost object product B.

A Direct Cost of One Cost Object Cannot Be an Indirect