QuestionMay 30, 2025

A cost can be classified as a direct cost during the first half of the Contractor's fiscal year and then be classified as an indirect cost during the second half of the fiscal year: False True

A cost can be classified as a direct cost during the first half of the Contractor's fiscal year and then be classified as an indirect cost during the second half of the fiscal year: False True
A cost can be classified as a direct cost during the first half of the Contractor's fiscal year and then be
classified as an indirect cost during the second half of the fiscal year:
False
True

Solution
4.2(344 votes)

Answer

False Explanation 1. Define Direct and Indirect Costs Direct costs are directly attributable to a specific project or activity, while indirect costs are not directly traceable to a single project but are necessary for the general operation. 2. Assess Cost Classification Change A cost cannot change classification from direct to indirect within the same fiscal year as it would violate consistency in accounting practices.

Explanation

1. Define Direct and Indirect Costs<br /> Direct costs are directly attributable to a specific project or activity, while indirect costs are not directly traceable to a single project but are necessary for the general operation.<br /><br />2. Assess Cost Classification Change<br /> A cost cannot change classification from direct to indirect within the same fiscal year as it would violate consistency in accounting practices.
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