[amp_mcq option1=”important” option2=”direct” option3=”indirect” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is: C. indirect<\/strong><\/p>\n An item of cost that is direct for one business may be indirect for another business. This is because the definition of direct costs varies from business to business. In general, direct costs are those that can be easily traced to a specific product or service. Indirect costs, on the other hand, are those that cannot be easily traced to a specific product or service.<\/p>\n For example, the cost of raw materials is usually considered a direct cost for a manufacturing business. This is because the cost of raw materials can be easily traced to the specific products that are manufactured. However, the cost of rent is usually considered an indirect cost for a manufacturing business. This is because the cost of rent cannot be easily traced to the specific products that are manufactured.<\/p>\n The same item of cost can be considered a direct cost for one business and an indirect cost for another business. This is because the definition of direct costs varies from business to business.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”important” option2=”direct” option3=”indirect” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47380","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n