All of the following are factors affecting direct versus indirect cost classification except:
A) materiality of the cost
B) cost accuracy
C) information technology's ability to trace costs in an economically feasible way
D) design of operations

Question

Quizplus · Accepted Answer

All of the other choices are factors that can affect whether a cost is classified as direct or indirect, such as the materiality of the cost or the design of operations. Cost accuracy, however, is not a factor affecting classification, as both direct and indirect costs should be accurately measured and recorded.

All of the Following Are Factors Affecting Direct Versus Indirect