Indirect costs are
A) costs that it is impossible to trace to a cost object
B) costs that cannot be traced to a cost object in an economic manner
C) the same as fixed costs
D) B and C

Question

Quizplus · Accepted Answer

Indirect costs cannot be traced to a cost object in an economic manner. This means that it is possible to associate them with a cost object, but the association is not precise or direct. Indirect costs are also not the same as fixed costs, which refer to costs that remain constant regardless of changes in the level of activity.

Indirect Costs Are