Vidyalelo
Commerce · Q62

Costing

Graduate and Post Graduate · Commerce · question 62

Q62

Direct cost incurred can be identified with ________.

A.
each department
B.
each unit of output
Answer
C.
each month
D.
each executive

Answer: Option B

Solution

Answer: Option B
Solution:
Direct cost incurred can be identified with each unit of output. Direct costs (such as for labor, material, fuel or power) vary with the rate of output but are uniform for each unit of production, and are usually under the control and responsibility of the department manager.