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Which of the Following Statements Is Correct in Relation to Determining

Question 45

Multiple Choice

Which of the following statements is correct in relation to determining whether a cost is direct or indirect?


A) The wider the definition of the cost object, the more costs that will be indirect costs.
B) The number of cost items that can be classified as direct costs does not depend on the definition of cost objects.
C) The narrower the definition of the cost object, the more costs that will be direct costs.
D) The wider the definition of the cost object, the more costs that will be direct costs.

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