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Classifying a Cost as Either Direct or Indirect Depends Upon

Question 95

Multiple Choice

Classifying a cost as either direct or indirect depends upon


A) the behaviour of the cost in response to volume changes.
B) whether the cost is expensed in the period in which it is incurred.
C) whether the cost can be traced to the cost object.
D) whether an expenditure is avoidable or not in the future.
E) the inventory classification system.

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