Which of the following factors affect the direct/indirect classification of a cost?
A) the level of budgeted profit for the next year
B) the estimation of time required to complete the order
C) the ability to execute an order in the most cost-efficient manner
D) the design of the operation

Question

Quizplus · Accepted Answer

The design of the operation affects whether a cost is classified as direct or indirect, as it determines how costs are traced to cost objects.

Which of the Following Factors Affect the Direct/indirect Classification of a Cost