Which of the following statements about direct and indirect costs is/are likely to be true? Note: multiple answers possible. Group of answer choices Whether a fixed cost is classified as direct or indirect cost depends on whether the level of production is within or outside the relevant range. Reliability of cost data is usually enhanced with more, rather than less, direct cost categories With the right allocation base, the assignment of indirect costs to a cost object will typically be more accurate than the assignment of direct costs to the same cost object While each indirect cost item would have one or more cost drivers, direct cost items do not typically have a cost driver.
12. Which of the following statements about direct and indirect costs is/are likely to be true?
Note: multiple answers possible.
Group of answer choices
Whether a fixed cost is classified as direct or indirect cost depends on whether the level of production is within or outside the relevant range.
Reliability of cost data is usually enhanced with more, rather than less, direct cost categories
With the right allocation base, the assignment of indirect costs to a cost object will typically be more accurate than the assignment of direct costs to the same cost object
While each indirect cost item would have one or more cost drivers, direct cost items do not typically have a cost driver.
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