The same cost may be direct for one cost object and indirect for another cost object.

Question

Quizplus · Accepted Answer

This statement is true. The classification of a cost as direct or indirect depends on the specific cost object being considered. A cost that is directly traceable to one cost object may be indirect for another cost object. For example, a production supervisor’s salary may be a direct cost for one product line but an indirect cost for another product line.

The Same Cost May Be Direct for One Cost Object