Classification of Cost as Direct and Indirect Costs-Multiple Choice Question

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Question

Classifying a cost as either direct or indirect depends upon

  1. The behavior of the cost in response to volume changes.
  2. Whether cost is expensed in the period in which it is incurred.
  3. The cost objective to which the cost is being related.
  4. Whether an expenditure is unavoidable because it cannot be changed.
  5. The timing of the cash outlay for the cost.

 

 

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