PRC-3 · Chapter 4 · Question 12 of 65
A bakery owner calculates that precisely 0.5 kg of flour and 2 eggs are physically traceable into every single cake produced. These costs are classified as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Direct costs
Explanation
Direct costs are costs that can be specifically and exclusively identified with and traced to a particular cost object (like the materials in a specific cake).
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