Multiple choice

Directions: Choose the correct option for the given question.

If an expense can be linked with a specific cost unit, it is treated as

  1. fixed cost

  2. variable cost

  3. direct cost

  4. indirect cost

  5. semi variable cost
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Direct costs are those that can be specifically and economically identified with a particular cost unit or product. Indirect costs cannot be traced to a single unit and must be allocated.

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