Cost object direct cost and indirect cost


Problem:

You are in the process of assigning costs to a specified cost object. You have determined which costs you will assign and are now in the process of deciding which costs to assign directly and which to assign indirectly.

Required:

Question 1: Explain specifically how you would decide which costs to assign directly versus which to assign indirectly.

Question 2: Define cost, cost object direct cost and indirect cost.

Question 3: How would advanced information gathering technology affect your classification?

Note: Please provide reasons to support your answer.

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Accounting Basics: Cost object direct cost and indirect cost
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