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Question

_________ is one which can be conveniently identified with and charged to a particular unit of cost.

A
Direct cost
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B
Indirect cost
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C
Overhead
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D
None of these
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Solution

The correct option is C Direct cost
Direct cost is that cost which is directly attributable to the production of a unit. For example cost of direct material and cost of labor which are directly associated with a unit cost.

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