Select the appropriate definition for each of the items listed below.
-A cost that is difficult to trace to a cost object
A)period cost
B)direct cost
C)opportunity cost
D)variable cost
E)indirect cost
F)fixed cost
G)product cost

Question

Quizplus · Accepted Answer

Indirect costs are expenses that are not directly traceable to a specific cost object, such as a product, project, or activity. Examples include utilities, rent, and administrative salaries. These costs are necessary for the operation but cannot be directly linked to the production or sale of individual products or services.

Select the Appropriate Definition for Each of the Items Listed