Which of the Following Statements Regarding Direct and Indirect Costs

Multiple Choice

Which of the following statements regarding direct and indirect costs is true?

A) Direct costs are always variable and indirect costs are always fixed.
B) Sunk costs are always direct, and opportunity costs are always fixed.
C) The distinction between a direct and indirect cost depends on the product, activity, or department to which the cost pertains.
D) If a cost is indirect to a department within a plant, it will also be indirect for the plant as a whole.