Costs such as transportation-out,sales commissions,uncollectible accounts receivable,and advertising costs are sometimes called:
A) upstream costs.
B) downstream costs.
C) direct costs.
D) indirect costs.

Question

Quizplus · Accepted Answer

These costs are called downstream costs because they occur after the production process and are associated with selling and distributing the product. Upstream costs, on the other hand, are incurred during the production process, such as direct materials and direct labor. Direct costs are expenses that can be directly attributed to the production of a specific item or service, while indirect costs are expenses that cannot be directly attributed to a specific item or service.

Costs Such as Transportation-Out,sales Commissions,uncollectible Accounts Receivable,and Advertising Costs Are