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What Does Classifying a Cost as Either Direct or Indirect

Question 104

Multiple Choice

What does classifying a cost as either direct or indirect depend upon?


A) Whether an expenditure is avoidable or not in the future
B) Whether the cost can be easily identified with the cost object
C) Whether the cost is expensed in the period in which it is incurred
D) The behaviour of the cost in response to volume changes

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