All of the following are true EXCEPT that indirect costs:
A)may be included in prime costs
B)are not easily traced to products or services
C)vary with the selection of the cost object
D)may be included in manufacturing overhead

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be traced directly to a specific product or service, and therefore cannot be included in prime costs. They may be included in manufacturing overhead, which is a component of the cost of goods sold. The allocation of indirect costs may vary with the selection of the cost object, which could be a product, service, department, or activity.

All of the Following Are True EXCEPT That Indirect Costs