alleryStart learning →Which kind of cost can be easily identified with individual cost centers?
AIndirect cost
BFixed overhead
CSunk cost
DDirect cost
Answer & Solution
Correct answer: D. Direct cost
A cost that can be traced readily to a cost center is a direct cost.
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Related questions
In the CIMA description of ABC, activities are assigned to what?In which journal did Cooper and Kaplan publish ABC articles from 1988?Drucker said ABC also records the cost of what?What limits the use of ABC, especially in services?What is a danger of ABC, like other cost allocation approaches?The chief executive's salary stays unassigned in ABC. What are such costs termed?Why did indirect costs rise relative to direct costs in modern factories?How does ABC assign costs, rather than using broad arbitrary percentages?