Question

Classifying a cost as either direct or indirect depends upon Multiple Choice whether an expenditure is unavoidable because it cannot be changed regardless of any action taken. whether the cost is expensed in the period in which it is incurred. the behavior of the cost in response to volume changes. the cost object to which the cost is being related.

Answer 1

The cost object to which the cost is being related

Step-by-step explanation:

Direct cost can easily be linked to a particular cost unit while the indirect cost can not be easily linked to any unit.

Direct cost is incurred for specific products or units . In other words , without those operations , it might be avoided. An example is cost of raw materials .

In direct cost provide multiple benefits to support production and operation. It can even be incurred whether there is an ongoing operation or not.An example Administrative expenses