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Which of the Following Statements About Indirect Costs Is True

Question 3

Multiple Choice

Which of the following statements about indirect costs is true?


A) All the statements about indirect costs are true.
B) Indirect costs are incurred for the benefit of multiple cost objects.
C) Cost drivers provide the link between indirect costs and cost objects.
D) Because it is not economically feasible to trace indirect costs to specific cost objects,the costs need to be allocated.

Correct Answer:

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