Which of the following statements is TRUE?
A) Indirect costs can be identified specifically with a given cost objective in an economically feasible way.
B) Managers prefer to classify costs as indirect rather than direct.
C) A cost may simultaneously be direct and indirect.
D) Direct costs cannot be identified specifically with a given cost objective in an economically feasible way.

Question

Quizplus · Accepted Answer

It is possible for a cost to be both direct and indirect. For example, a supervisor's salary may be considered indirect because it cannot be specifically attributed to a single product or project, but it may also be considered direct if the supervisor's time is only spent working on a specific project. The other statements are not true.

Which of the Following Statements Is TRUE