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Which of the Following Is Correct About Indirect Costs of a Cost

Question 5

Multiple Choice

Which of the following is correct about indirect costs of a cost object?


A) Cost allocation is not used to describe the assignment of these costs to a particular cost object.
B) Cost tracing is used to describe its assignment of these costs to a particular cost object.
C) Can be traced to a cost object in an economically feasible way.
D) Cannot be traced to a cost object in an economically feasible way.
E) Cost assignment is not used in indirect costing methods.

Correct Answer:

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