Costs which are not economically feasible to trace but which are related to a cost object are known as:
A)variable costs.
B)indirect costs.
C)direct costs.
D)fixed costs.

Question

Quizplus · Accepted Answer

Indirect costs are costs that cannot be directly traced to a cost object but are related to it. These costs are also known as overhead costs or indirect expenses. Variable costs are costs which vary according to the level of production or sales. Direct costs can be traced directly to the cost object, such as materials and labor. Fixed costs are costs that remain constant whatever the level of production or sales.

Costs Which Are Not Economically Feasible to Trace but Which