Question content area top

Part 1

Why do managers consider direct costs to be more accurate than indirect costs?

Question content area bottom

Part 1

Complete the statements below.

When _____ costs are _____ to a certain cost object, the resources used are unique to the cost object and can be accurately assigned to it. When costs of resources shared _______ among distinct types of cost objects are ________, managers are less certain whether the cost ______ base accurately measures the benefit or value added to the distinct type of cost object from its share of common resources consumed. Managers prefer to use ______ accurate costs when making decisions.