Direct tracing of costs reduces the amount of costs classified as indirect costs.

Name: Direct tracing of costs reduces the amount of costs classified as indirect costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Direct tracing involves assigning costs directly to a specific cost object, such as a product or service. This reduces the amount of costs classified as indirect costs, which are costs that cannot be easily traced to a specific cost object. Therefore, the statement is true.

Direct Tracing of Costs Reduces the Amount of Costs Classified