Select the incorrect statement from the following.
A) Indirect costs can be easily traced to a cost object.
B) Actual costs are useful for evaluating managerial performance.
C) Actual costs are not relevant in many decisions because actual costs cannot be determined until after the decision has been made.
D) When accumulating the cost of a specific cost object, the indirect costs are allocated to the cost object.

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be easily traced to a cost object, unlike direct costs. Therefore, the statement that "Indirect costs can be easily traced to a cost object" is incorrect.

Select the Incorrect Statement from the Following