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    Managerial Accounting

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    Many costs are classified as indirect costs in service organizations because _________

    a) direct costs are unimportant
    b) direct costs is a term used only in manufacturing organizations
    c) output is difficult to measure and relate to costs
    d) output cannot be inventoried

    Believe "C" is the correct answer please advise why if it's right or wrong. Thanks!!!!

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    Solution Preview

    yes, (c) is correct answer
    <br>Indirect costs are those expenses (often referred to as overhead) that cannot be ...