Costs that are common to many cost objects and cannot easily be traced to a specific cost object are known as indirect costs.

Name: Costs that are common to many cost objects and cannot easily be traced to a specific cost object are known as indirect costs.
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Indirect costs are expenses that apply to more than one business activity and cannot be easily traced to a specific cost object, such as a product, project, or department. Examples include utilities, rent, and administrative salaries.

Costs That Are Common to Many Cost Objects and Cannot