Which of the Following Statements About How a Manufacturer Categorizes

Multiple Choice

Which of the following statements about how a manufacturer categorizes its costs and expenses is true?

A) A general expense is much like a direct cost in that it cannot be identified directly with a specific object of profit measurement, such as a territory, salesperson, or product
B) All costs are categorized as either direct or indirect-but never as both
C) A salesperson's salary would be a direct cost for his or her territory, but an indirect cost for the product sold
D) Advertising is a direct cost
E) A specific expense is much like a direct expense in that it can generally be identified with a wide range of products and functions