Vidyalelo
Management · Q333

Management Accounting

Graduate and Post Graduate · Management · question 333

Q333

Cost of particular cost object which cannot be traced in economically plausible way is termed as

A.
indirect cost
Answer
B.
partial cost
C.
benchmark cost
D.
direct cost

Answer: Option A

Solution

Answer: Option A
Solution:
Cost of particular cost object which cannot be traced in economically plausible way is termed as indirect cost. Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.