If a cost is incurred to support the company as a whole,it is referred to as a
A)Common cost.
B)Traceable cost.
C)Direct cost.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Common costs are expenses incurred for the benefit of the company as a whole and cannot be directly traced to a specific product, department or service. Instead, these costs are shared among different units or departments of the organization. Examples of common costs include rent, utilities, and salaries of top management.

If a Cost Is Incurred to Support the Company as a Whole,it