It is NOT necessary to assign indirect costs to cost objects.

Name: It is NOT necessary to assign indirect costs to cost objects.
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Question

Quizplus · Accepted Answer

Indirect costs must be assigned to cost objects to accurately determine the total cost of the product or service. These costs include overhead expenses such as rent, utilities, and administration. Failure to assign indirect costs can lead to an inaccurate assessment of profitability and can result in poor decision making.

It Is NOT Necessary to Assign Indirect Costs to Cost