Answered

  1. A cost that is not easily or conveniently traceable to a cost object is known as:
    A. collective cost
    B. indirect cost
    C. additional cost
    D. conversion cost

Verified Answer :

GinnyAnswer

Final answer:

Indirect costs are expenses that are not easily traceable to a specific cost object or center.


Explanation:

Indirect cost refers to a cost that is not easily traceable to a cost object. These costs are not directly linked to a specific cost center or cost object and can include expenses like general administration or shared facilities.

For example, if a company incurs costs for information technology support that benefits multiple departments, those costs would be considered indirect costs.


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