Question

Knowledge Check 01 Match the term and the definition. Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) common cost of selling a tour package. is a cost that is incurred to support a number of cost objects but cannot be 2. indirect cost traced to them individually Adventure Holiday sells thousands of tour packages each month thought its various branches. cost A branch manager's salary would be a(n) 3. of the branch.

Answer 1

Question

Matching Term

1

Indirect Cost

2

Common cost

3

Direct Cost

Direct costs can be defined as costs which can be accurately traced to a cost object with little effort.

Costs which cannot be accurately attributed to specific cost objects are called indirect costs.

Common cost is an expense associated with operating a facility, product, or segment that is shared between two or more departments or users.