Indicate whether each of the following statements is true or false.
Indirect costs cannot be traced to a cost object in a cost-effective manner. For a factory with several departments, each department could be treated as a cost object.
Depreciation on a factory building is a direct cost for the departments in the factory.
For a factory with several departments, depreciation on equipment used in one department would be a direct cost to that department.
An individual cost cannot be both fixed and direct with respect to a particular cost object.

Question

Indicate whether each of the following statements is true or false.
 Indirect costs cannot be traced to a cost object in a cost-effective manner. For a factory with several departments, each department could be treated as a cost object.
Depreciation on a factory building is a direct cost for the departments in the factory.
For a factory with several departments, depreciation on equipment used in one department would be a direct cost to that department.
An individual cost cannot be both fixed and direct with respect to a particular cost object.

Quizplus · Accepted Answer

The Answer of Indicate whether each of the following statements is true or false.
 Indirect costs cannot be traced to a cost object in a cost-effective manner. For a factory with several departments, each department could be treated as a cost object.
Depreciation on a factory building is a direct cost for the departments in the factory.
For a factory with several departments, depreciation on equipment used in one department would be a direct cost to that department.
An individual cost cannot be both fixed and direct with respect to a particular cost object.

Indicate Whether Each of the Following Statements Is True or False