Generally,managers are more confident about the accuracy of ________ costs of cost objects.
A)variable
B)fixed
C)direct
D)indirect

Question

Quizplus · Accepted Answer

Direct costs are costs that can be easily traced to a specific cost object, such as a product or department. Since managers have a clear understanding of which costs are directly related to a specific cost object, they are more confident about the accuracy of these costs. Variable and fixed costs can both be direct or indirect, depending on how they are related to the cost object. Indirect costs are more difficult to allocate and generally involve estimation or allocation methods that can introduce some level of uncertainty.

Generally,managers Are More Confident About the Accuracy of ________ Costs