Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
1. Indirect costs cannot be traced to a cost object in a cost-effective manner.
2. For a factory with several departments, each department could be treated as a cost object.
3. Depreciation on a factory building is a direct cost for the departments in the factory.
4. For a factory with several departments, depreciation on equipment used in one department would be a direct cost to that department.
5. An individual cost cannot be both fixed and direct with respect to a particular cost object.