Question

___________ are costs that are difficult to attribute or allocate to a specific output or work activity.

a. Variable costs
b. Direct costs
c. Indirect costs
d. Fixed costs

Answer 1

Indirect costs are costs that cannot be directly traced to a specific output or work activity, unlike variable or direct costs. Therefore the correct answer for the question is C.

Step-by-step explanation:

Costs that are difficult to attribute or allocate to a specific output or work activity are known as indirect costs. Unlike variable costs and direct costs, indirect costs cannot be directly traced to a product or service. This is in contrast with variable costs, which change with the level of production and can include expenses such as labor and raw materials. Fixed costs, another category, remain the same regardless of production levels, with examples including the rent on a factory or retail space. Therefore, the correct answer to the question is c. Indirect costs.