Question

Which definition best describes indirect costs?

• A. Indirect costs are those costs which are not controlled directly by a manager.
• B. Indirect costs are those costs which cannot be directly associated with a product or service.
• C. Indirect costs are always fixed.
• D. Indirect costs are always manufacturing overhead costs.

Answer 1

The correct option is B

Indirect costs are those costs which cannot be directly associated with a product or service.

Indirect costs are those costs which cannot be directly associated with a product or service.