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  • Financial Management / Management Accounting III
  • Directions: Choose the correct option for the given quest...
Multiple choice

Directions: Choose the correct option for the given question: An item of cost which is direct for one business may be indirect for another.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Classification of costs as direct or indirect depends on the ability to trace the cost to a specific cost object, which varies by business model.

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