Which of the following statements is(are) true concerning common costs?
I.They are costs that are directly traceable to an individual product line.
II.They are normally avoidable.
A)I only
B)II only
C)Both I and II
D)Neither I nor II

Question

Quizplus · Accepted Answer

Common costs are costs that cannot be directly attributed to a specific product or business segment, but instead are shared across multiple products or segments. Therefore, statement I is false. Common costs are also typically unavoidable, as they are necessary for running the overall business, so statement II is also false.

Which of the Following Statements Is(are) True Concerning Common Costs