Asked by Tashae Thomas on May 09, 2024
Verified
Which of the following is the main feature of support department costs?
A) They are associated with sales commissions.
B) They are office supply costs.
C) They are direct costs.
D) They are indirect costs.
Support Department Costs
Expenses associated with functions that benefit the entire organization, such as human resources and IT services.
Indirect Costs
Costs that are not identified with or traced to a cost object.
- Determine the difficulties and strategies in evaluating and utilizing costs associated with support departments.
Verified Answer
BW
Bailey WilsonMay 15, 2024
Final Answer :
D
Explanation :
Support department costs are considered indirect costs because they cannot be directly traced to a specific product or service but are necessary for the production process or service delivery.
Learning Objectives
- Determine the difficulties and strategies in evaluating and utilizing costs associated with support departments.
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