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Whether a Cost Is Classified as Direct or Indirect Will

Question 2

Multiple Choice

Whether a cost is classified as direct or indirect will depend on:


A) the nature of the cost object.
B) whether the cost can be economically traced to the cost object.
C) whether the organisation is in a manufacturing or service industry
D) the nature of the cost object AND whether the cost can be economically traced to the cost object.

Correct Answer:

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