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Commerce · Q328

Costing

Graduate and Post Graduate · Commerce · question 328

Q328

Cost which is related to specific cost object and cannot be economically traceable is classified as

A.
line cost
B.
staff cost
C.
direct cost
D.
indirect cost
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Cost which is related to specific cost object and cannot be economically traceable is classified as indirect cost. Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.