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Classifying a Cost as Either Direct or Indirect Depends Upon

Question 34

Multiple Choice

Classifying a cost as either direct or indirect depends upon


A) whether an expenditure is unavoidable because it cannot be changed regardless of any action taken.
B) whether the cost is expensed in the period in which it is incurred.
C) the behavior of the cost in response to volume changes.
D) the cost object to which the cost is being relateD.This is the definition for classifying a cost as either direct or indirect.

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