Indirect costs occur when
A)resources are shared by more than one product or service.
B)costs are directly traced to products or services.
C)controllable costs are incurred by cost objectives.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Indirect costs occur when resources (such as labor, equipment, or facilities) are shared by more than one product or service, making it difficult to directly trace them to a specific cost objective. These costs are typically allocated to cost objectives based on some predetermined measure, such as the number of units produced or the amount of time spent on a project.

Indirect Costs Occur When