AP - Advance Placement Practice Test
AP AP Financial Management & Budgeting 3
What is the difference between a direct cost and an indirect cost?
Select your answer
A
Direct costs are fixed; indirect costs are variable
B
Direct costs are traceable to a specific product or project; indirect costs are shared across multiple cost objects
C
Direct costs are approved by management; indirect costs are not
D
Direct costs appear on the income statement; indirect costs appear on the balance sheet
Hint
