Which of the following statements about how a manufacturer categorizes its costs and expenses is True?
A)A general expense is much like a direct cost in that it cannot be identified directly with a specific object of profit measurement,such as a territory,salesperson or product
B)All costs are categorized as either direct or indirect-but never as both
C)A salesperson's salary would be a direct cost for his or her territory,but an indirect cost for the product sold
D)Advertising is a direct cost
E)A specific expense is much like a direct in that it can generally be identified with a wide range of products and functions

Question

Quizplus · Accepted Answer

A salesperson's salary can be directly tied to the specific territory they are responsible for, so it is a direct cost for that territory. However, if the salesperson is selling multiple products, their salary would be an indirect cost for each individual product. The other statements in the answer choices are either incorrect or not entirely accurate.

Which of the Following Statements About How a Manufacturer Categorizes