Indirect costs cannot be traced to the cost objects,so they are allocated.

Name: Indirect costs cannot be traced to the cost objects,so they are allocated.
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Question

Quizplus · Accepted Answer

Indirect costs are costs that are not directly linked to a specific cost object or product, such as rent or administrative expenses. Since these costs cannot be directly traced, they need to be allocated or assigned to cost objects using cost allocation methods, such as overhead rates or activity-based costing.

Indirect Costs Cannot Be Traced to the Cost Objects,so They