Costs readily traced to a department because they are incurred for that department's sole benefit are called expenses.

In cost-benefit analysis, what is meant by "costs"? Choose 1 answer Only the direct financial expenditures Both direct and indirect expenses, including non-monetary factors Only the indirect non-monetary factors The total revenue generated

costs, also called differential costs, are the additional costs from selecting a certain course of action.

The administrative expenses of a firm such as office salaries, insurance, and rent are classified as expenses.

Indirect costs are:Question 2Answera.Costs that can be directly attributed to the production of goodsb.Costs that cannot be easily traced to a specific cost objectc.Fixed costs that remain constant regardless of activity levelsd.Easily traceable to a specific cost object

Office and administrative expenses can be charged on the basis of .a.labour cost.b.factory cost.c.material cost.d.prime cost