Which one of these statements best explains why companies want to distinguish between indirect and direct costs?

a) To evaluate business segments on the basis of only those costs directly traceable to each segment

b) To better determine whether a company is a large organization or a small organization

c) To determine the sales prices nesessary to break even

d) To better distinguish between variable and fixed costs for each product

e) To better distinguish between material costs and labor costs

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Which one of the following statements best explains why companies want to distinguish between direct and indirect costs?

a. To evaluate business segments on the basis of only those costs directly traceable to each segment
b. To better determine whether a company is a large organization or a small organization
c. To determine the sales prices necessary to break even
d. To better distinguish between variable and fixed costs for each product
e. To better distinguish between materials costs and labor costs

wash4, read my post right above yours. I'm doing your homework for you anymore than I planned on doing the original poster's homework - which is why I posted that link.