Indirect costs can be traced to specific units.

Name: Indirect costs can be traced to specific units.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Indirect costs cannot be traced to specific units as they are not directly related to the production of a specific product or service. Examples of indirect costs include rent, utilities, and administrative salaries, which are generally incurred on a company-wide basis rather than on a per-unit basis.

Indirect Costs Can Be Traced to Specific Units